A little extra time

If you are required to distribute and file Form 1095 –B and Form 1095-C, here is some good news:

As it has every year since 2015, the IRS (the Service) has extended the deadline for employer distribution of Form 1095-B and Form 1095-C. The due date, originally January 31, 2020, is now March 2, 2020. The reason for the extension is provided in IRS Notice 2019-63 issued December 2,2019: The Department of the Treasury (Treasury Department) and the Service have determined that a substantial number of employers, insurers, and other providers of minimum essential coverage need additional time beyond the January 31, 2020, due date to gather and analyze the information and prepare the 2019 Forms 1095-B and 1095-C to be furnished to individuals.

There is no need to apply for this automatic extension. The IRS encourages employers and others who provide coverage to furnish the statements as soon as possible. Since W-2 forms must be distributed to employees by January 31, some employers may prefer to distribute the 1095s at the same time.

Filing dates unchanged

No similar extension has been granted for filing these forms. Here are dates to keep in mind:

• February 28, 2020 – paper filing deadline for 1095-B/1095-C schedules
• March 31, 2020 – electronic filing deadline for 1095-B/1095-C schedules (Employers that file 250 or more information returns must file them electronically.)

Good-Faith Relief

The notice also extends relief from penalties under sections 6721 and 6722 to reporting entities that can show they made a good-faith effort to comply with the information-reporting requirements for 2019 under sections 6055 and 6066. (For more information, see the Notice.)

The Notice explains what the Service considers when determining good faith: “…the Service will take into account whether an employer or other coverage provider made reasonable efforts to prepare for reporting the required information to the Service and furnishing it to employees and covered individuals, such as gathering and transmitting the necessary data to an agent to prepare the data for submission to the Service or testing its ability to transmit information to the Service.”

Will these extensions be necessary in future years?

Both the Treasury Department and the Service would like to know what you think and why. (All comments will be available for public inspection on the Regualtions.gov website.) You can submit your comments via the Federal eRulemaking Portal (type “IRS-2019-XX” in the search field), or you may mail your comments to this address:

Attn: CC:PA:LPD:PR (Notice 2019-XX) Room 5203
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044

Questions?

If after reading the notice, you still have questions, call Danielle Pierce of the Office of Associate Chief Counsel (Procedure and Administration). She is the main author of this notice and can be reached at 202.317.6845 (not a toll-free call).

Here are some IRS webpages with information that may also help:

• About Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
• About Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
• ACA Information Center for Applicable Large Employers (ALEs)
• Affordable Care Act Tax Provisions for Employers