IRS Again Extends Deadline to Provide Forms 1095-B and 1095-C (Benefit Alert)

Posted in: Benefit Minute, Employee Benefits

On December 22, 2017, the Internal Revenue Service extended the deadline to provide 2017 Form 1095-B and Form 1095-C from January 31, 2018 to March 2, 2018.   This 30-day extension is automatic. Employers and insurers do not have to request it.  Employers and insurers are still encouraged to distribute the forms as soon as they are able.  There is no extension of the due dates to file with the IRS.  The due date is April 2, 2018 for electronic filing (or February 28, 2018 if filed on paper).

Due to this extension, individuals may not receive these forms by the time they are ready to file their 2017 individual income tax returns. While information on these forms may assist in preparing a return, they are not required to file. Individuals can prepare and file their returns using other information about their health coverage. They do not have to wait for their Form 1095-B and/or 1095-C to file.

The IRS also extended the good faith transition relief to apply for 2017 filings.  This provides penalty relief to employers and insurers who can show they made good faith efforts to comply with the information reporting requirements.  The relief applies only to incorrect or incomplete information reported on a Form 1095-B or 1095-C (assuming a good faith effort was made to get it correct) and not to a failure to timely provide a Form 1095-B or 1095-C.  It requires employers and insurers to make a reasonable effort to gather data, prepare the required information and provide it to employees.

About The Author

Tina Bull

Tina Bull, VP of Compliance Services for the Employee Benefits practice, is responsible for managing and overseeing all activities of the Compliance Services Department. She advises and assists clients with respect to health/welfare plan design, administration and communication, with focus on current benefit laws and regulations. Tina’s areas of expertise include: Internal Revenue Code and ERISA requirements for health and welfare benefit plans; Internal Revenue Code Section 125 cafeteria plan implementation and administration; COBRA administrative requirements; HIPAA administrative simplification, privacy and security compliance and benefit taxation issues. In addition to conducting internal training for employee benefits staff, she has spoken at numerous seminars on regulatory compliance issues.