Internal Revenue Service delays Affordable Care Act reporting

Posted by Charles Middleton on 01/03/2016

: I understand that the IRS has extended the Affordable Care Act reporting requirements that are applicable to insurers, employers and others for 2015.  Is this correct?

A: Yes. On Monday, Dec. 28, the IRS extended certain ACA reporting deadlines that many insurers and employers, in particular, have been working hard to comply with for 2015.


Q: What reporting requirements were delayed?

A: The ACA requires health insurers, employers who self-insure, government agencies, and other providers of minimum essential coverage to annually file information returns with the IRS and furnish statements to individuals regarding the coverage provided. The ACA also requires certain large employers (generally those with 50 or more full-time equivalent employees) to annually file information returns with the IRS and furnish statements to individuals relating to the coverage that the employer offers, or does not offer, to its full-time employees. These reporting requirements are first required for the 2015 calendar year.


Q: What are the new deadlines after the delay?

A: The deadline for furnishing 2015 statements to individual insureds and/or employees (Form 1095-B and Form 1095-C) was extended from Feb. 1, 2016, to March 31, 2016. The deadline for filing the 2015 returns with the IRS (Form 1094-B and 1094-C) was extended from Feb. 29, 2016, to May 31, 2016, for those filing via paper; and from March 31, 2016, to June 30, 2016, for those filing electronically.


Q: What if an employer misses the extended reporting deadlines?

A: Employers and other coverage providers that do not comply with the extended deadlines are subject to penalties. An employer who misses the deadlines would need to show reasonable cause to avoid penalties. The IRS indicated that it will take into account certain factors in evaluating whether there is reasonable cause, including whether the employer gathered and transmitted the reporting data to an agent for submission to the IRS, whether the employer tested its ability to transmit the information to the IRS previous to the deadline, and whether the employer is working to meet the reporting requirements for 2016.


Published The Oklahoman, January 1, 2016