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This alert was prepared for TBR Associates by Richard A. Szczebak
Compliance Update:
January 2017






Furnish 2016 employee form 1095 statements to employees as planned -
 
Due Date to furnish employee statements is extended to March 2, 2017

Repeal and replace are today's catch phrases. The prudent approach is to stay the course and file your 1095-Cs as planned. This is to confirm and remind you that the IRS extended the January 31, 2017 due date to furnish 2016 Forms 1095-C to full-time employees to March 2, 2017. This was done several weeks ago in IRS Notice 2016-70. Here is a summary of the extension and guidance on resulting issues related to the extension.

  • Specifically, this Notice extends the due date for furnishing to individuals the 2016 Form 1095-B, Health Coverage, and the 2016 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2017, to March 2, 2017.
    • The Notice does not extend the due date for filing with the IRS the 2016 Forms 1094-B, 1095-B, 1094-C, or 1095-C, which remains February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically.
    • This means that the due date for employer filings with the IRS in paper is now 2 days before the extended due date for furnishing forms to full-time employees.
  • This Notice also extends the good-faith transition relief from penalties that were granted for 2015 filings to the 2016 information-reporting requirements under Internal Revenue Code sections 6055 and 6056.
    • Specifically, this notice extends transition relief from penalties 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 2016 (both for furnishing to individuals and for filing with the IRS) for incorrect or incomplete information reported on the return or statement.
    • This 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 under the rules described above).
    •  
    • In determining good faith, the IRS will take into account whether an employer or other coverage provider made reasonable efforts to prepare for reporting the required information to the IRS and furnishing it to employees and covered individuals, such as gathering and transmitting the necessary data to an agent to prepare the data for submission to the IRS, or testing its ability to transmit information to the IRS.
    • In addition, the IRS will take into account the extent to which the employer or other coverage provider is taking steps to ensure that it will be able to comply with the reporting requirements for 2017.

            Notice 2016-70 reminds taxpayers (employees) that they can file their individual tax returns before receipt of Forms 1095-B and 1095-C and may rely on other information received from employers and insurers for purposes of determining eligibility for any premium tax credit and confirming they had minimum essential coverage during the year. Additionally, individuals are reminded that the Forms 1095-B and 1095-C should not be attached to the income tax returns they file with the IRS; rather, they should be maintained for, and kept with, their 2016 tax records.
 
            It may be advisable for employers planning to furnish the Form 1095-C to employees after January 31, 2017 and on or before march 2, 2017 to communicate with employees to indicate when they may expect to receive the 1095-C statements and the type of information they may rely on as evidence of coverage/offer of coverage so that they may file their tax returns as soon as they are ready to do so.




This Alert was prepared for TBR Associates by Richard A. Szczebak. 

About The Author: Mr. Szczebak is an accomplished attorney and consultant with a strong background in regulatory and compliance matters regarding employee benefit plans, federal health care reform (ACA) and Massachusetts health care reform. His firm, Parker Brown Macaulay & Sheerin PC, concentrates exclusively in employee benefits law. Its senior level counsel navigate the complicated rules that govern employee benefit plans. Mr. Szczebak can be reached at rszczebak@parkerbrown.com .

The foregoing has been prepared as a general overview of the subject matter covered. 
 It is not meant to provide legal advice with respect to any specific matter and it should not be taken as legal or compliance advice. Do not take, or refrain from taking, any action on legal or compliance issues related to any employee benefit plan(s) based upon this information. Readers of this alert are encouraged to consult with their own professional counsel. This agency and Parker Brown Macaulay & Sheerin PC are not obligated to provide updates on the information presented herein.Mr. Szczebak can be reached at rszczebak@parkerbrown.com
© 2017 Richard A. Szczebak, Esq. All Rights Reserved.
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This update is a publication of TBR Associates, designed to highlight employee benefit matters of interest to our readers.  The information contained in this publication is meant for general educational purposes only.