IRS Delays Reporting Requirements

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The following is a guest post by Misty Baker, the Director of Life & Health Insurance Information for the Independent Insurance Agents of Texas. Come see Misty as one of our speakers at this year’s InsurEXPO16!

The Internal Revenue Service extended the deadline for 2015 Affordable Care Act information reporting, giving employers some highly-sought after relief.

In Notice 2016-4 (https://www.irs.gov/pub/irs-drop/n-16-04.pdf), issued by the IRS on Dec. 28, the agency extended the deadlines for both furnishing to individuals reporting forms and filing them with the IRS.

Employers with more than 50 FTEs will need to furnish employees with the 2015 Form 1095-B (Health Coverage) and Form 1095-C (Employer Provided Health Insurance Offer and Coverage), the IRS has extended the deadline from Feb. 1, 2016, to March 31, 2016.

For filing with the IRS the 2015 Form 1094-B (Transmittal of Health Coverage Information Returns), Form 1095-B, Form 1094-C (Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) and Form 1095-C, the agency has extended the deadline from Feb. 29, 2016, to May 31, 2016 if not filing electronically, and from March 31, 2016, to June 30, 2016 if filing electronically.

Any employer filing 250 or more forms must do so electronically.

Notice 2016-4 also provides relief to individuals who file their tax returns before receiving a Form 1095-C. These individuals are not required to amend their returns after receiving these forms late.

The notice recognizes that some employees and related individuals who enrolled in coverage through a public insurance exchange could be adversely affected by the extension. For 2015 only, these individuals are entitled to rely on “other information received from employers about their offers of coverage” for purposes of determining eligibility for the premium tax credit when filing their income tax returns. Even these individuals are not required to file amended returns once they receive their Forms 1095-C. Individuals need not send this information to the Service when filing their returns but should keep it with their tax records. Similar relief is provided in the case of Form 1095-B. For 2015 only, individuals who rely upon other information received from their coverage providers about their coverage for purposes of filing their returns need not amend their returns once they receive the Form 1095-B.

For questions about the ACA, email Misty Baker (mbake@iiat.org) or call 512-493-2432

 

Misty Color-Edit-EditMisty Baker – Director of Life & Health Insurance Information, Independent Insurance Agents of Texas

Misty has been in the insurance industry since 1998, working as a Benefit Analyst, until May 2000 when  she opened  her agency,  Lonestar Benefit Solutions, and worked as an independent agent in the Austin  area. Misty sold her  agency in October 2011 and  joined IIAT where she is currently Director of Life &  Health Insurance Information. Her  position allows her to assist, educate, and  research health insurance  issues for IIAT members, legislators, and  regulators. In 2015, she presented move than 50 PPACA  presentations and has reached over 2,000 employers in  Texas. Misty has been a vital resource for elected  officials in Texas and in  Washington, D.C., where she has testified  in the House and Senate chambers. In  September 2015, Misty was named as one of the most influential women in  benefit advising by Employee Benefit Adviser.