November 21, 2016

30-Day Extension of the Deadline for 2016 Affordable Care Act Reporting by Employers and Plans

On November 18, 2018, the Treasury Department and Internal Revenue Service (IRS) published Notice 2016-70, which extended by 30 days the deadline for providing the 2016 Forms 1095-B and 1095-C to employees. The new deadline is March 2, 2017. They also extended to the 2016 reporting year the good-faith penalty relief that was in place for the 2015 reporting year. This penalty relief applies to incorrect or incomplete information (including taxpayer identification numbers and dates of birth), but it only protects reporting entities that can show they made good-faith efforts to comply with the reporting requirements and that met the applicable deadlines (including the new March 2 deadline).

This notice does not extend the deadlines for filing these forms (and the applicable transmittal forms) with the IRS; those deadlines are still February 28, 2017 for paper returns and March 31, 2017, if filing electronically. While the Treasury/IRS determined there was no need for an extension of this filing deadline generally, individual plans or employers may still request an extension.

Notice 2016-70 also provides guidance to individuals who might not receive a Form 1095-B or Form 1095-C by the time they file their 2016 tax returns. Individuals who rely upon other information received from employers or health plans need not amend their tax returns once they receive their forms.

For information on Affordable Care Act reporting by employers, see Sibson Consulting’s October 6, 2016 Update.

Contact an Expert