IRS issued a notice on Friday, Nov. 18, extending the due date for plan sponsors and issuers that provide individuals with Forms 1095-B or 1095-C. The date for furnishing 2016 forms will move from Jan. 31, 2017 to March 2, 2017. This change does not extend the Internal Revenue Service (IRS) filing deadline.
The notice also extended the good faith safe harbor for incorrect or incomplete information for the Affordable Care Act (ACA) 6055 and 6056 reporting.
The "automatic" 30-day extension for furnishing Forms 1095-C and 1095-B to individuals means that the employer or health care provider does not need to request an extension from the IRS. The IRS will not formally respond to extensions that have already been requested by reporting entities.
Because of the extension granted under this notice, some employees and other individual taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2016 tax return. Taxpayers may rely on other information received from their employer or other coverage provider for purposes of filing their returns, including determining eligibility for the premium tax credit. Like last year, they do not need to wait for the 1095-B or C forms.
IRS Reporting by Employers or Health Coverage Providers
No impact to employers or health coverage providers filing 2016 Forms with the IRS. The IRS filing dates remain at Feb. 28, 2017 for non-electronic filing, or March 31, 2017, if filing electronically.
Safe Harbor for Good Faith Efforts
The notice also extends transition relief with respect to penalties where reporting entities can show that they have made good-faith efforts to comply with the information-reporting requirements for 2016. This applies both to furnishing reports to individuals and for filing reports with the IRS.
This relief "applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement."
No relief is provided in the case of reporting entities that do not make a good-faith effort to comply with the regulations or that fail to file an information return or furnish a statement by the due dates.
The IRS encouraged self-funded employers and coverage providers to furnish statements as soon as they are able. UnitedHeathcare issued the 1095 forms by January 31 to individuals covered by fully insured plans.
For more information please contact your UnitedHealthcare representative.