Happy Holidays a little early from the IRS! On November 18, the IRS issued Notice 2016-70 that extends the due date for employers to distribute the 2016 Form 1095-B and 2016 Form 1095-C from January 31, 2017, to March 2, 1017.  That’s good news for employers who already have end of January deadlines for distributing Forms 1099 and W-2 to employees. 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. No similar extension has been granted for filing, so those dates remain February 28, 2017, if not filing electronically and March 31, 2017, if filing electronically.

What about filing income tax returns?

The IRS realizes that, as a result of this extension, some individuals may not receive their 1095 forms before they are ready to file their income tax reforms. If that is the case, individuals may use other information received from their employers or providers to complete their tax reforms. Taxpayers do not need to send the information used to the IRS but should keep it filed with their tax records.

Good Faith Transition Relief 

Recognizing the challenges of gathering information and completing all forms, the IRS has decided to extend the short-term relief from penalties initiated last year to include 2016 reporting. This relief from penalties under sections 6721 and 6722 is provided to those who can show they have made good-faith efforts to comply with requirements regarding both furnishing forms to individuals and filing forms with the IRS. This relief applies only to inaccurate or incomplete information reported on the statement or return. While not guaranteed, the relief is frequently granted.

Additionally, the IRS does not anticipate extending the transition relief to 2017 reporting with respect to either the due dates or to good faith relief.

Questions?

If, after reading the notice, you still have questions, call Hilary March 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). 

Read IRS Notification 2016-70