The IRS has issued Notice 2019-63, which delays certain aspects of the ACA information reporting for 2019. Specifically, Applicable Large Employers (ALEs) won't be required to issue 1095-B or 1095-C reports to their full-time employees until March 2, 2020, for the 2019 tax year. The IRS has determined that employers and tax preparers need additional time to correctly complete their 1095 reports and have subsequently given all ALEs the automatic 30-day extension that they would otherwise have to request directly from the IRS. Importantly, this doesn't affect 1094-B or 1094-C reporting that you may have to complete. Those deadlines remain the same – February 28, 2020 for ALEs filing on paper, and April 1, 2020 for ALEs filing electronically.

The IRS is indicating they're once again not going to require individuals to file their 1095(s) with their personal tax returns. Additionally, reporting entities who are generally required to provide Form 1095-Bs to individuals, which includes health insurance carriers and small (under 50 full-time employees) self-funded employer plans, are not required to provide individuals with a Form 1095-B, detailing coverage by month, as long as the following criteria are met:

  • The reporting entity must post a notice on its website stating that individuals may receive a copy of their 2019 Form 1095-B upon request, along with an email address and physical address that an individual may use to request a copy, and a phone number an individual could contact with questions, and;
  • The entity furnishes a 2019 Form 1095-B to any individual who requests one within 30 days of the request. 

ALEs are still required to provide Form 1095-Cs to their employees and to file them with the IRS. Additionally, those sponsoring a self-funded group health plan will still be required to complete Part III of the Form 1095-C.

Employers will also be able to take advantage of the “good faith” effort transitional relief that was available for the 2015, 2016, 2017 and 2018 ACA reporting. This means the IRS won't fine ALEs who demonstrate a good faith effort in the timely completion and filing of their reports, even if those reports contain errors. The IRS has begun to fine employers for late 1095-C filings, so it's important to meet the filing deadlines even if some of the forms will need correcting after the filing.

As always, your Assurance 'A' Team is ready to assist with any questions you may have. We will continue to monitor this and other related ACA issues and provide additional information as it becomes available. Please contact your Assurance representative with any questions.

Information contained herein is not intended to constitute tax or legal advice and should not be used for purposes of evading or avoiding otherwise applicable regulatory responsibilities as issued by the federal or state government(s) and/or taxes owed under the Internal Revenue Code. You are encouraged to seek advice from your legal or tax advisor based on your circumstances.