The deadlines for submitting IRS Forms 1094 and 1095 have been extended! They are the IRS forms for reporting Affordable Care Act (ACA) information for 2015. This is welcome news for the thousands of businesses completing these forms for the first time.
New due dates for IRS forms
Small and large businesses have different reporting requirements (1-50 employees, and more than 50 employees, respectively). HealthCare.gov and our payroll blog post offer information about business size and ACA, so you can figure out which forms and deadlines apply to you.
- IRS Forms 1095-B and 1095-C sent to individuals – the new due date is March 31, 2016 (instead of February 1st).
- IRS Forms 1094-B, 1095-B, 1094-C, and 1095-C sent to the IRS – the new due date is May 31, 2016, if NOT filing electronically (instead of February 29th).
- IRS Forms 1094-B, 1095-B, 1094-C, and 1095-C sent to the IRS – the new due date is June 30, 2016, if filing electronically (instead of March 31st).
7 things you need to know
The IRS Notice 2016-4 includes more than the news of the deadline extensions. Here are 7 key points from the eight-page document.
- Minimum essential coverage is the buzzword when it comes to the requirements of the Affordable Care Act. The notice reminds individuals that they need to submit proof of coverage. If you are providing minimum essential coverage for your employee(s), that proof may come from you.
- The IRS strongly encourages businesses to take advantage of the extension and be sure that all IRS forms are completed accurately.
- Despite the extension, the IRS will be ready to accept forms in January of 2016.
- The notice states that there will be penalties for late submissions.
- If your IRS forms are tardy, you are still encouraged to get them submitted. The notice explains that extenuating circumstances will be considered, and penalties could be reduced or waived. Your efforts to comply will be recognized.
- Can your employees file their income tax returns before receiving IRS Form 1095? The notice talks about that too. (Yes, they can file without Form 1095, even if they are asking for the premium tax credit.)
- You are also asked to submit your forms to the IRS and distribute statements to employees as soon as they are ready.
One last thing, your small business might qualify for the Small Business Health Care Tax Credit if you purchased employee health insurance through the SHOP Marketplace (small business health options program).
For more information
It’s great to have extra time to figure out your responsibilities with ACA and to get the right numbers on the right IRS forms. Here are a couple resources that may be helpful.
- You can read What You Need to Know About ACA Tax Forms for a breakdown on completing the forms.
- The IRS website is a good resource. You may want to start here and click on the additional links provided.
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