IRS Extends Deadline for Furnishing ACA Statements to Individuals And Good-Faith Transition Relief

The Internal Revenue Service (IRS) issued Notice 2018-94 extending the due date for certain 2018 information-reporting requirements for insurers, self-insuring employers, and certain other providers of minimum essential coverage under section 6055 of the Internal Revenue Code (Code) and for applicable large employers under section 6056 of the Code. The notice extends the due date for furnishing to individuals the 2018 Form 1095-B, Health Coverage, and the 2018 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2019, to March 4, 2019.

The notice also extends transition relief from penalties under sections 6721 and 6722 to reporting entities that can show that they have made good-faith efforts to comply with the information-reporting requirements under sections 6055 and 6056 for 2018 (both for furnishing to individuals and for filing with the IRS) for incorrect or incomplete information reported on the return or statement. The relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement. No relief is provided in the case of reporting entities that do not make a good-faith effort to comply with the regulations or that fail to file an information return or furnish a statement by the due dates (as extended).

Because the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018, the Department of the Treasury and the IRS are studying whether and how the reporting requirements under section 6055 should change, if at all, for future years.