1095-B/C Form Distribution Due Date Extended

Posted by BAS - 02 December, 2021

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Forms 1095-B and C for 2021 must be furnished to full-time employees and covered individuals by January 31, 2022. In all prior reporting years, the IRS extended this due date by 30 days, automatically. While an extension was not anticipated for the 2021 tax year, the IRS gave an early holiday present by issuing proposed regulations which, when finalized, make a 30-day extension for distributing Form 1095-B and 1095-C a permanent part of ACA compliance.

The new regulations are in proposed form but include a provision allowing ALEs and insurers to take advantage of the automatic 30-day extension for the 2021 plan year. The proposed regulations also make permanent the alternative method of posting Form 1095-B (instead of furnishing the form). The IRS does confirm in the guidance that going forward, there will be no good-faith compliance relief for form errors. 

Specific points:

  • For providers of Minimum Essential Coverage (insurers, self-funded employers) who issue Form 1095-B, there is an automatic extension of up to 30 days to furnish the form to covered individuals. The Form will be considered distributed timely if furnished no later than 30 days after January 31 of the calendar year. If the extended furnishing date falls on a weekend or legal holiday, the due date will be the next business day.
  • For Applicable Large Employers who issue Form 1095-C, there is an automatic extension of up to 30 days to furnish the form to full-time employees and/or covered individuals. The Form will be considered distributed timely if furnished no later than 30 days after January 31 of the calendar year. If the extended furnishing date falls on a weekend or legal holiday, the due date will be the next business day.
  • So long as the individual shared responsibility penalty remains at $0, a reporting entity (insurer or self-funded plan) does not have to distribute Form 1095-B if two conditions are met: (1) the entity posts a notice on its website saying the form is available upon request and (2) the form is provided within 30 days of request. The proposed regulations give specific requirements for what is considered a valid alternative posting for ACA purposes. This continues to apply to only Form 1095-B and is not extended to Form 1095-C.
  • Good faith compliance relief is not extended past the 2020 tax year. That means starting with the 2021 tax year, errors in coding on Form 1095 may subject the ALE to monetary penalties without being able to argue for “good faith relief.”

A copy of the proposed regulation may be accessed by clicking here.

If you use BAS for your ACA data collection and reporting needs BAS will be sending you a schedule with Form review and approval dates. For more information, contact the ACA team at ACA-Services@basusa.com or contact your account manager.

Topics: Health Care Reform (ACA), Affordable Care Act, HR & Benefit Plans, HR & Benefits News


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