On November 18th, 2016, the IRS announced a deadline extension that may benefit employers that need to comply with the Affordable Care Act’s Employer Reporting Requirements. Here are the main two changes that were announced:
- The due date for distributing Form 1095-C documents to employees has been extended from January 31, 2017 to March 2, 2017
- The good-faith transition relief from penalties was extended for 2016. This relief primarily applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement.
The IRS did not extend the deadline regarding when applicable employers must file with the IRS. The due date remains as February 28, 2017 (or March 31, 2017 if filing electronically).
As a result of the deadline extension regarding Form 1095-C distribution to employees, some individual taxpayers may not receive their form prior to when they are ready to file their annual tax return. As was the case last year, these individuals may rely on other information that confirms they had coverage for the year.
If you have any questions regarding the ACA Reporting Requirements, please contact our team at 781-759-1222. In addition, we encourage all clients to download our in-depth Compliance Bulletin regarding this topic within the CBGconnect portal.