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ACA reporting extended for taxable year 2018

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Tax Hot Topics newsletterThe IRS issued Notice 2018-94 extending to Mar. 4, 2019, the date by which insurers and employers must furnish Form 1095-B, “Health Coverage,” and Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage” to individuals for 2018. Forms 1095-B and 1095-C are normally required to be filed by Jan. 31, 2019. However, the rules allowing the IRS to grant an extension of time of up to 30 days for furnishing Forms 1095-B and 1095-C to employees will not apply to the extended due date.

Furthermore, the notice does not provide for additional time for filing with the IRS the 2018 Forms 1094-B, 1095-B, 1094-C, and 1095-C. The deadlines for these forms remain Feb. 28, 2019, if not filing electronically, and April 1, 2019, if filing electronically. The notice also does not modify the provisions regarding the automatic extension of time for employers filing these forms with the IRS. The automatic extension remains available under the normal rules for employers and other coverage providers who submit a Form 8809 before the due date. Employers and other coverage providers that fail to comply with the due dates for furnishing Forms 1095-B and 1095-C or for filing Forms 1094-B, 1095-B, 1094-C, or 1095-C are subject to penalties for failure to timely furnish and file the reports. However, the IRS cautioned that employers and other coverage providers that fail to meet the relevant due dates should still furnish and file, as the IRS will consider those actions when determining whether to abate penalties for reasonable cause.

Because of the extensions provided by the notice, some individual taxpayers may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2018 tax returns. These taxpayers may instead rely on other information received from their employers or other coverage providers for purposes of filing their returns, including determining eligibility for the premium tax credit under Section 36B and confirming that they had minimum essential coverage for purposes of Sections 36B and 5000A.

Notice 2018-94 also extends the good-faith transition relief from Sections 6721 and 6722 penalties for 2018 due to the ongoing challenges of complying with the information reporting requirements under Sections 6055 and 6056 (both for furnishing forms to individuals and for filing with the IRS). Specifically, the notice extends relief from penalties for reporting entities that report incorrect or incomplete information on the return or statement, provided these entities can show that they made good-faith efforts to comply with the requirements.

Contact
Jeff Martin
Partner
Washington National Tax Office
T +1 202 521 1526

Keith Mong
Managing Director
Washington National Tax Office
T +1 202 521 1554

James Sanchez
Senior Associate
Washington National Tax Office
T +1 202 861 4107

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