Tax Tips

Affordable Care Act: Deadline Extended by IRS to Distribute 2016 Forms 1095-C & 1095-B

Friday November 18, 2016 the IRS issued Notice 2016-70. This notice delays the deadlines for employers and health insurers to distribute Forms 1095-C and 1095-B to their employees.

With this delay employee statements must be distributed no later than March 2, 2017 (previously January 31). The deadlines for IRS transmittals (Forms 1094-C and 1094-B) were not delayed. Forms 1094-C and 1094-B still must be submitted to the IRS by February 28, 2017 if in hard-copy; and by March 31, 2017 if in electronic format via AIR. As with this past year’s reporting, copies of all 1095-Cs and 1095-Bs distributed to employees are required with the IRS submissions.

Furthermore, the IRS has extended the “good faith” transition relief for 2016 filings similar to 2015 reporting. This good faith relief does not excuse employers from completing the reporting, but it lowers the standard by which the content of the filings will be judged by the IRS. A further explanation is highlighted in this notice.

Even in light of uncertainty about ACA requirements following last week’s national election results, my advice to employers is to proceed with compliance with reporting and Play-or-Pay requirements. Further updates and information will be provided as we move forward into 2017 and learn more about the future of the ACA.

If you would like additional information on ACA reporting requirements please refer to www.IRS.gov.  For year round professional tax service phone Kristin at (803)329-0609.

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Kristin P. Sinclair (803)329-0609

A Accu Tax for Year Round Service

Rock Hill SC 
November 23, 2016