November 23, 2016


Benefits professionals have one more thing to be thankful for this year -- a 30-day extension to furnishing employees forms associated with Affordable Care Act reporting. Specifically, the deadline for providing 2016 Form 1095-C (Employer-Provided Health Insurance Offer and Coverage), and Form 1095-B (Transmittal of Health Coverage Information Returns) is pushed back to March 2, 2017.

Applicable large employers, those with 50 or more full-time or equivalent employees, are generally subject to the ACA's employer mandate as it relates to reporting requirements. The deadline extension to provide ACA forms to employees was announced November 18 in IRS Notice 2016-70. In granting this automatic extension, the IRS stated that it would not permit additional, permissive, extensions to the new due date. Employers who have already requested the deadline extension prior to the publication of Notice 2016-70 may not receive a formal response from the IRS. Employers are "encouraged" to provide the required forms "as soon as they are able."

No other reporting deadline extensions were announced. There is no change in the deadline for employers to provide required forms to the IRS. Forms must be provided to the IRS no later than February 28, 2017, if filing by paper, or March 31, 2017 if filing electronically. Automatic extensions of time for filing information returns to the IRS remain available under normal rules by submitting a Form 8809.

Notice 2016-70 also extends the Good Faith transition relief for penalties otherwise levied in response to incorrect and incomplete information. This relief does not protect employers from penalties related to missed deadlines or failure to furnish a statement or return. Instead, penalties may be waived if an employer can show the employer made a good-faith effort to comply with the information reporting requirements of the ACA.

The IRS acknowledged that individual employees may not receive a Form 1095-B or 1095-C in time to file their individual returns. Notice 2016-70 states, "[t]axpayers may rely on other information received from their employer or other coverage provider for purposes of filing their returns ... Taxpayers do not need to wait to receive Forms 1095-B and 1095-C before filing their returns."

Several provisions of the ACA are in flux currently. Employers are encouraged to contact their attorney or benefits advisor with questions.

Ahlers & Cooney Employee Benefits Practice Group

About Ahlers & Cooney's Client Alerts Our Client Alerts are intended to provide occasional general comments on new developments in Federal and State law and regulations which we believe might be of interest to our clients. The Client Alerts should not be considered opinions of Ahlers & Cooney, P.C., and are not intended to provide legal advice as a substitute for seeking professional counsel. Readers should not under any circumstance act upon the information in this publication without seeking specific professional counsel. Ahlers & Cooney will be pleased to provide additional details regarding any article upon request. Additional copies of this Client Alert may be obtained by contacting any attorney in the Firm or by visiting the Firm's website at   ©2016 Ahlers & Cooney, P.C. All Rights Reserved.

NOTICE TO THE PUBLIC The determination of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely upon advertisements or self-proclaimed expertise. This disclosure is required by rule of the Supreme Court of Iowa. Memberships and offices in legal fraternities and legal societies, technical and professional licenses, and memberships in scientific, technical and professional associations and societies of law or field of practice does not mean that a lawyer is a specialist or expert in a field of law, nor does it mean that such lawyer is necessarily any more expert or competent than any other lawyer. All potential clients are urged to make their own independent investigation and evaluation of any lawyer being considered. This notice is required by rule of the Supreme Court of Iowa.

Beenken, Katherine


« Back