For all years since the Affordable Care Act’s effective date, the IRS extended a key ACA deadline - the due date for furnishing to individuals the annual Form 1095-B and Form 1095-C. It is expected that the furnishing due date will not be extended for 2021 reporting.
The due date for distributing Form 1095-B/C is January 31 of the year following the tax year (January 1, 2022 for the 2021 reporting year). This due date has been extended in past years to early March. Prior years’ extensions were automatic and employers did not have to take action to get the timing relief.
Tax year 2020 was the last year of good faith reporting relief for ACA compliance. Starting with the 2021 reporting year, employers will no longer be able to claim “good faith” relief from reporting mistakes, and the IRS will require forms to be distributed by January 31st without an automatic extension.
For employers who use BAS’ ACA Data Collection and Reporting Services, the absence of an extended distribution date means employers must quickly and carefully review ACA data and forms according to BAS communicated deadlines. Forms must be furnished by the end of January which creates a consolidated timeframe for employer review compared to what employers are used to from prior years. Employers may wish to consider allowing e-delivery of ACA forms in order to have the most time for form review. Please stay alert for notices from BAS about ACA matters and respond promptly.
For information about BAS' ACA Data Collection and Reporting Services, or for information about electronic delivery of ACA forms, contact your account manager or solutions@BASusa.com.
