aca

By Brian R. Carnie

On Friday, November 18, 2016, the IRS announced an automatic extension of the Affordable Care Act deadlines for distributing the 1094-B/1095-B and 1094-C/1095-C forms to employees. This relief gives applicable employers an additional 30 days (from January 31, 2017 to March 2, 2017) to deliver these forms to employees. This relief only applies for the 2016 reporting year.

The IRS did not change the deadlines for filing the Forms 1094 and 1095 with the agency. The deadline for filing these forms by mail is February 28, 2017. Employers filing electronically have until March 31, 2017.

Similar to 2015, the IRS also announced it would not penalize employers for incorrect or incomplete forms for 2016 as long as they make good faith efforts to comply. This relief is not available for covered employers who fail to timely file the forms. Although there is much talk about repealing and replacing the ACA once the new administration takes office, until Congress acts (which likely won’t happen until after the 2016 reporting deadlines have passed) we recommend that employers comply with the current requirements to avoid unnecessary penalties or fines.

Stay tuned for future anticipated changes!