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Affordable Care Act Tax Reporting Extensions

The IRS has once again extended the deadline for furnishing to employees the applicable tax forms required by the Affordable Care Act (ACA), and will continue to provide employers with penalty relief if they make good-faith efforts to comply with the ACA’s tax reporting requirements. Unfortunately, unlike last year, the IRS did not extend the deadline for filing the applicable tax forms with the IRS. 

As background, for the first time last year employers were required to perform ACA tax reporting. This generally required large employers to complete a Form 1095-C for each full-time employee and all other employees enrolled in self-insured health coverage (if the employer sponsors a self-insured health plan), and furnish the Form 1095-C to the employee and file copies of the Forms 1095-C with the IRS. Because it was the first year of reporting, the IRS provided that it would not impose penalties if the employer made good-faith efforts to comply. Last year, the IRS extended the deadlines for both furnishing and filing. 

As noted, the IRS provided in Notice 2016-70 that it will continue to permit employers to utilize the good-faith standard for penalty relief, and that the Form 1095-C furnishing deadline is once again extended. It did not extend the filing deadline. With this furnishing extension, the following deadlines apply for this year’s reporting:

 

Original Deadline

Extended Deadline

Furnishing Form 1095-C to Employees

January 1, 2017

March 2, 2017

Filing Paper Forms 1095-C with IRS

February 28, 2017

No Extension

Electronically Filing* Forms 1095-C with IRS

March 31, 2017

No Extension

*Electronic filing required for 250 or more forms.

This 30-day extension of the furnishing deadline is welcomed news for employers who are still working out the kinks as they undergo the second year of reporting. While the IRS did not extend the filing deadline, employers may receive an automatic 30-day extension to file if they submit Form 8809 before the deadline. Please note that employers cannot take advantage of the good-faith standard if they do not complete their ACA tax reporting on time.

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About this Author

Nicholas J. Engel, Foley, Employee Benefits Lawyer, Executive Compensation Law Graduate
Law Graduate

Nicholas (Nick) Engel is a law graduate with Foley & Lardner LLP. He is a member of the Employee Benefits & Executive Compensation Practice.

During law school, Mr. Engel worked as a student attorney for the Low Income Taxpayer Clinic, where he represented low-income taxpayers in audits, appeals, and collections disputes with the IRS. He also interned with the IRS Office of Chief Counsel in Milwaukee, assisting attorneys in preparing cases for trial in the U.S. Tax Court, as well as serving as a law clerk for a Milwaukee-based law firm....

414-319-7214
Nick J. Welle, Foley, Employment Benefits Lawyer, qualified retirement plans attorney
Senior Counsel

Nick Welle is an associate and business lawyer with Foley & Lardner LLP. His practice is focused on health and welfare plans. He also assists clients with qualified retirement plans, including defined benefit and defined contribution plans.

Mr. Welle advises employers, insurers, and brokers concerning the federal laws governing health and welfare plans, including the Affordable Care Act (ACA), Employee Retirement Income Security Act (ERISA), Internal Revenue Code (Code), Health Information Portability and Accountability Act (HIPAA), Mental Health Parity and Addiction Equity Act (MHPAEA), Public Health Service Act (PHSA), Consolidated Omnibus Budget Reconciliation Act (COBRA), and the Family and Medical Leave Act (FMLA). He also assists clients with plan design and administration, including self-insured and fully-insured health and welfare plans and wellness programs. Mr. Welle has experience drafting and reviewing HIPAA policies and agreements, including privacy and security policies, business associate agreements, authorization forms, and notices of privacy practices.

414-319-7185