IRS extends due date for furnishing Forms 1095-B and 1095-C to individuals

The IRS has extended the due date for furnishing Forms 1095-B and 1095-C to individuals. Health insurers and applicable large employers (ALEs) are required, by Code Secs. 6055 and 6056, respectively, to file and furnish annual information returns and coverage statements. Penalties are imposed under Code Secs. 6721 and 6722 for violations of these requirements.

Regulations published in 2014 specify the deadlines for information reporting under Code Secs. 6055 and 6056. The regulations under Code Sec. 6055 require providers of minimum essential coverage to file with the IRS an information return and a transmittal on or before the following February 28 (March 31 if filed electronically) and must furnish to the individual identified on the return a written statement on or before January 31 following the year to which the statement relates. Those under Code Sec. 6056 require every ALE or ALE member to file an information return and a transmittal on or before February 28 (March 31 if filed electronically) of the year following the year to which it relates and to furnish to fulltime employees a written statement on or before January 31 following the year to which the statement relates.

The IRS has determined that many employers, insurers, and other coverage providers need additional time beyond the January 31, 2017, due date to gather and analyze information and prepare the 2016 Forms 1095-B and 1095-C to be furnished to individuals. Therefore, the IRS has extended by 30 days the due date for furnishing the 2016 Form 1095-B and the 2016 Form 1095-C, from January 31, 2017, to March 2, 2017. Reg. §§1.6055-1(g)(4)(i)(B)(1) and 301.6056-1(g)(1)(ii)(A), which allow the IRS to grant extensions of time of up to 30 days to furnish Forms 1095-B and 1095-C, will not apply to the extended due date. Only the deadline to furnish forms to individuals is extended, and the due date for employers, insurers, and other providers is not extended, but remains February 28, 2017 (March 21, 2017, if filed electronically). Finally, the transition relief from penalties under Code Secs. 6721 and 6722 is extended to reporting entities that can show they have made good-faith efforts to comply with the information reporting requirements under Code Secs. 6055 and 6056.

SOURCE: Notice 2016-70, I.R.B. 2016-49, December 5, 2016.

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