IRS Extends 2017 ACA Due Date for 1095 Forms in 2018
On December 22, 2017, the IRS announced an extension for Affordable Care Act (ACA) reporting and compliance that affects the 2017 ACA deadline in 2018 for distributing Forms 1095-B and 1095-C to employees:
“Insurers, self-insuring employers, other coverage providers, and applicable large employers now have until March 2, 2018 to provide Forms 1095-B or 1095-C to individuals, which is a 30-day extension from the original due date of Jan. 31.”
New 2017 ACA Deadline Applies Automatically
The IRS further stated the extension of the 2017 ACA deadline for Forms 1095-B and 1095-C is automatic, and employers and providers will not have to request it formally.
The IRS emphasized, however, the due dates for filing 2017 information returns are not extended. The 2017 ACA deadline for paper filing with the IRS remains 2/28/18, and the ACA efiling deadline is still 3/31/18.
Avoid the Panic: Notify Employees of Delay NOW
With the extended deadline for 1095s, employees may not have their forms by the time they are ready to file their 2017 individual income tax returns. According to the December 22 announcement, the IRS states:
“While information on these forms may assist in preparing a return, the forms are not required to file. Taxpayers can prepare and file their returns using other information about their health coverage. They do not have to wait for Forms 1095-B or 1095-C to file.”
You can avoid being inundated with emails from panicked employees who are expecting these forms by the previous deadline of 1/31/18, by notifying all your employees NOW of the new deadline. Be sure to inform them to expect 1095 forms no later than 3/2/18 AND reassure them they do not need to wait for these forms to file their individual returns if they choose to do so before 3/2/18.