IRS extends ACA reporting deadline for employers

The Internal Revenue Service on Monday extended the deadline for 2015 Affordable Care Act information reporting, giving employers subject to the requirements some highly-sought after relief.

In Notice 2016-4, issued by the IRS on Dec. 28, the agency extended the deadlines for both furnishing to individuals reporting forms and filing them with the IRS.  

Starting in 2016, applicable large employers must report whether an individual is covered by minimum essential coverage and that an offer of minimum essential coverage that provides minimum value was made to each full-time employee.

Employers have been seeking relief from the requirements, with many saying they're still not prepared for the task at hand.

Following consultation with stakeholders, the IRS and the Department of the Treasury “have determined that some employers, insurers, and other providers of minimum essential coverage need additional time to adapt and implement systems and procedures to gather, analyze, and report this information,” the agency said in its notice.

Also see: “What employers need to tell employees about forms 1095.”

For furnishing employees with the 2015 Form 1095-B (Health Coverage) and Form 1095-C (Employer Provided Health Insurance Offer and Coverage), the IRS has extended the deadline from Feb. 1, 2016, to March 31, 2016.

For filing with the IRS the 2015 Form 1094-B (Transmittal of Health Coverage Information Returns), Form 1095-B, Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) and Form 1095-C, the agency has extended the deadline from Feb. 29, 2016, to May 31, 2016 if not filing electronically, and from March 31, 2016, to June 30, 2016 if filing electronically.

Any employer filing 250 or more forms must do so electronically.

Also see: “IRS allows employers to test run ACA reporting.”

The notice also provides guidance to those who might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns.

“Notwithstanding the extensions provided in this notice, employers and other coverage providers are encouraged to furnish statements and file the information returns as soon as they are ready,” the IRS says.

Also see: “4 ACA IT compliance solutions to consider.”