First, the good news: Just in time, the IRS has issued a final rule making permanent the automatic 30-day extension deadline to furnish employees their Affordable Care Act (ACA) 1095 forms. The final rule (Information Reporting of Health Insurance Coverage and Other Issues Under Sections 5000A, 6055, and 6056) applies to health insurance carriers, self-insured employers, and government agencies as providers of minimum essential coverage. The final rule includes:
- An automatic 30-day extension from January 31 to March 2 each year to furnish 1095-B and 1095-C statements to employees regarding the prior year’s coverage; and
- An alternative manner for reporting entities, including employers, to furnish the required forms to individuals by posting “a clear and conspicuous notice” on the entity’s website. Such notice must offer the employee a way to request a copy of their statement.
The bad news? The final rule confirms that there is no longer any transitional good faith relief from penalties for reporting incorrect or incomplete information on such forms for the 2021 tax year or subsequent tax years.
The final rule is effective on December 15, 2022 for reporting requirements by employers for calendar years beginning after 2021.