IRS Extends Due Date for Filing ACA Forms to March 31, 2016

The IRS released a surprise notice late afternoon, December 28, 2015 officially extending the due dates for filing the 2015 information reporting under I.R.C. §§6055 AND 6056 (Notice 2016-4).  This will come as welcome news to employers and health insurance issuers struggling to meet the original deadline for furnishing Forms 1095-B and 1095-C to individuals.

Furnishing Statements to Individuals - Applicable large employers and health insurance issuers now have nearly two additional months to issue Forms 1095-B and 1095-C to individuals. These forms must now be distributed to individuals by March 31, 2016 (rather than the original due date of February 1).  

Filing with the IRS - The deadline for filing the forms with the IRS (1094-B, 1094-C, 1095-B and 1095-C) has been extended three months. If filing by mail, the new deadline is May 31, 2016. If filing electronically, the new deadline is June 30, 2016.

Please note that this delay is specific to forms relating to the 2015 calendar year that will be filed in early 2016. Presumably the previous deadlines will go back into effect in 2017. Employers who fail to meet the extended deadlines may still be subject to penalties.  In light of these extensions, the extensions outlined in the Form 1094-C and 1095-C instructions will not apply to these extended due dates. As a reminder, the penalty for failing to submit a required return is $250 for each return for 2015.

The original deadline for furnishing Form 1095-B and Form 1095-C coincided with the deadline for furnishing the Form W-2 to employees and was intended to aid taxpayers in filing their federal tax returns. The IRS has acknowledged that this extension could cause problems for some individuals who will not have received their forms prior to submitting their tax returns, but that such individuals may rely on other information received from coverage providers and will not need to file an amended return upon receipt of the Form 1095-B or Form 1095-C or any corrections. This message should not be construed as legal or tax advice.