Thank You IRS - Extensions for This Year’s ACA Tax Reporting

by Foley & Lardner LLP
Contact

The “Bottom Line”

Employers will have until March 2, 2018 to furnish Form 1095-C (“Employer-Provided Health Insurance Offer and Coverage”) to employees.
___________________________________________________

Following its recent practice, the IRS has once again extended the deadline for furnishing to employees a statement regarding offers of health coverage required by the Affordable Care Act (ACA) by 30 days, and will continue to provide employers with penalty relief if they make good-faith efforts to comply with the ACA’s tax reporting requirements. Consistent with its approach last year, the IRS did not extend the deadline for filing the related tax forms with the IRS.

As background, ACA requires large employers to report on the offers of health coverage, if any, made to each full-time employee. Large employers must report on each full-time employee, regardless of whether an offer of coverage was made to the full-time employee or whether the full-time employee enrolls in any coverage offered by the large employer. Tax reporting includes furnishing a statement (Form 1095-C) to each full-time employee and filing copies of all of these statements, along with a transmittal page (Form 1094-C), with the IRS. Sponsors of self-funded health plans must also report on each employee and dependent enrolled in self-funded health coverage, regardless of whether the employee is a full-time employee (Form 1095-C can still be used for this reporting).

This tax reporting was required in 2016 (with respect to health coverage offered in the 2015 calendar year) and in 2017 (with respect to health coverage offered in the 2016 calendar year). The next round of tax reporting is required in early 2018 (with respect to health coverage offered in the 2017 calendar year).

Just like the IRS did for the 2015 and 2016 forms, the IRS recently announced in Notice 2018-06 that it would again extend the furnishing deadline. As noted, the IRS did not extend the filing deadline. However, employers may receive an automatic 30-day extension to file if they submit Form 8809 before the deadline. With this furnishing extension, the following deadlines apply for this year’s reporting:

  Original Deadline Extended Deadline
Furnishing Form 1095-C to Employees January 31, 2018 March 2, 2018
Filing Paper Forms 1095-C with IRS February 28, 2018 No Extension
Electronically Filing* Forms 1095-C with IRS April 2, 2018 No Extension

*Electronic filing required for 250 or more forms.

As noted, the IRS will also continue to permit employers to utilize the good-faith standard for penalty relief, meaning that the IRS will not impose tax reporting penalties on an employer who submits incomplete or inaccurate information on its forms so long as the employer can demonstrate that it made good-faith efforts to comply. However, employers cannot utilize this good-faith standard if they do not complete their ACA tax reporting on time.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Foley & Lardner LLP | Attorney Advertising

Written by:

Foley & Lardner LLP
Contact
more
less

Foley & Lardner LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.