The IRS Extends the Deadline for Furnishing Form 1095-C

With the release of Notice 2019-63, the Internal Revenue Service (IRS), extended the deadline for furnishing Forms 1095-B and 1095-C to individuals from January 31, 2020 to March 2, 2020. Included in the Notice was penalty relief for good-faith reporting errors and the suspension of the requirements to issue Form 1095-B to individuals, under certain conditions.

The Notice did not extend the due date for filing the forms with the IRS. Forms remain due on February 28, 2020. Forms filed electronically are due March 31, 2020.

Highlights of the notice include:

  • The deadline for furnishing the 2019 Forms 1095-B and 1095-C to individuals is moved to Monday, March 2, 2020.  The Notice also provides penalty relief for good-faith reporting and suspends the requirement to issue Form 1095-B to individuals (under certain conditions.)
  • Important: the due date for filing the forms with the IRS has not been extended and the deadline remains Friday, February 28, 2020; or, Tuesday, March 31, 2020, if filing electronically.
  • Employers may still obtain an automatic 30-day extension for filing with the IRS provided they submit Form 8809 on/before the Forms’ due date.

Starting in 2019, the individual mandate penalty was reduced to zero; so, an individual does not need the information on Form 1095-B to complete his or her federal tax return.  The IRS is granting penalty relief to employers who do not furnish a Form 1095-B to individuals provided that the reporting entity meets certain criteria.  NOTE: Applicable Large Employers (ALE) are still required to furnish Form 1095-C to their full-time employees; plus, they must also complete Part III of the Form if the employee is enrolled in self-insurance coverage.  The relief from furnishing Form 1095-B does not extend to IRS reporting.

The IRS will not impose penalties on employers that can show they made good faith efforts to comply with the requirements for calendar year 2019.  Please note this relief applies only to furnishing and filing incorrect or incomplete information, and not a failure to furnish or file.

More information on Notice 2019-63 provided by Stacy Barrow, our ERISA Counsel and Benefit Advisors Network Compliance Director is available HERE.