IRS Released Proposed Regulations with ACA Reporting Relief

The Internal Revenue Service (IRS) released proposed regulations affecting reporting requirements under the Affordable Care Act (ACA). The proposed regulations make permanent a 30-day automatic extension for furnishing Forms 1095-B and 1095-C to individuals. These forms were originally due January 31, but will now be due on March 2 (or the next business day if March 2 falls on a weekend or holiday). Note that the proposed regulations do not change the due dates for submission to the IRS.

The proposed regulations also confirm the end of the transitional good-faith relief from penalties for ACA reporting, beginning for tax year 2021. The IRS will begin assessing penalties arising from incorrect or incomplete ACA reporting, as well as failure to file with the IRS and failure to furnish forms to individuals. The penalty for the 2021 reporting year is $280 per return.

Also included in the proposed regulations is an alternative manner of providing Forms 1095-B and 1095-C to part-time employees and non-employees (such as former employees). These forms do not need to be automatically provided if the furnisher posts a clear and conspicuous notice on its website indicating the availability of the forms upon request. The notice must explain how to request a copy of the form and contain contact information for the reporting entity. Forms must be provided within 30 days of the request. This alternative manner of providing forms will only apply to tax years when the shared responsibility payment is $0.