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May 17, 2018

Deadline Delayed for 2017 ACA Reporting

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On December 22, 2017, the IRS delayed the 2017 furnishing deadline for ACA reporting, under Section 6055 and Section 6056. As a result, health insurers, self-insuring employers, other health coverage providers and applicable large employers now have until March 2, 2018 (the original deadline was January 31, 2018) to provide Forms 1095-B or 1095-C to employees or covered individuals. This is an automatic extension for all reporting entities; therefore, the IRS will not grant any additional extensions of time to furnish the required forms.

However, the due dates for filing returns (Forms 1094-B, 1095-B, 1094-C or 1095-C) with the IRS for 2017 have not been extended. The due dates to file returns with the IRS are below:

  • February 28, 2018 if filing paper forms
  • April 2, 2018 if filing electronically (March 31, 2018 is a Saturday) electronic filing is required if filing more than 250 Forms 1095-C for 2017

In addition, the IRS extended transition relief from penalties for entities that can prove a good faith effort was made to comply with 2017 reporting requirements despite incorrect or incomplete information. For example, relief exists for incorrect taxpayer identification numbers and dates of birth as well as other required information. There is no relief for not making a good faith effort to comply with reporting requirements or failing to furnish or file forms in a timely manner.

What Individuals Should Know

Individuals may not receive Forms 1095-B or 1095-C in time to file 2017 tax returns. If the forms are available, individuals should include the forms in their 2017 tax filing but should not wait for the forms to file 2017 tax returns. The forms should be kept with other tax records.

What Employers Should Know

Employers should continue with their efforts to furnish required forms to individuals as soon as they are available as well as to file the required forms with the IRS within the stated deadlines in order to avoid penalties.   

Click here for an overview of the IRS’s recent extensions.