The IRS released final regulations making certain changes to the ACA reporting requirements permanent.
Under the ACA rules, Forms 1095-B and C must be furnished to full-time employees and covered individuals by January 31 of the year following the reporting year. Starting with the initial reporting year through the 2020 reporting year, the IRS extended this due date by 30 days, automatically. Last year, the IRS issued proposed regulations making a 30-day extension for distributing Form 1095-B and 1095-C a permanent part of ACA compliance. This week the IRS finalized those proposed regulations.
The final regulations incorporate the following into the ACA compliance rules:
- 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 Form 1095-B 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 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.
- The transitional good faith compliance relief from penalties for reporting incorrect or incomplete information is no longer available. This means errors in coding on Form 1095 may subject the ALE to monetary penalties without being able to argue for “good faith relief.”
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.
