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IRS Issues Relief From Distributing 1095-Bs

In Notice 2019-63, the IRS provides welcome ACA reporting relief for employers and insurance carriers.

As with prior years, the IRS extended the deadlines to complete and distribute certain ACA reporting forms.

Form

To IRS
Original Deadline

To IRS
Extended Deadline

To Employee
Original Deadline

To Employee
Extended Deadline

1095-C
  • Feb. 28 (Paper)
  • Mar. 31
No Extension Jan. 31 Mar. 2
1095-B
  • Feb. 28 (Paper)
  • Mar. 31
No Extension Jan. 31 Mar. 2

The IRS provided additional relief to entities required to distribute Form 1095-B. The insurance carrier typically issues the 1095-B for insured plans. There are also some employers that must complete and distribute the 1095-B if it is a non-ALE (applicable large employer) self-insured plan. The 1095-B is intended to report coverage for purposes of individual mandate compliance. However, beginning January 1, 2019, the individual mandate penalty was eliminated.

For these two groups reporting on the B forms, the IRS stated that it will not assess a penalty for failure to distribute Form 1095-B to participants in cases where the reporting entity meets the following requirements:

  1. Prominently place a notice on its website with an email address, physical address, and telephone number, where individuals can contact the entity to request a copy of the 1095-B; and
  2. The reporting entity provides a copy of the 1095-B within 30 days of the request.

Importantly, this relief does not apply to the employer mandate reporting requirement to complete and distribute Form 1095-C. ALEs must still furnish a copy Form 1095-C to its full-time employee by the extended deadline, including completing Part III that is required for self-insured plans.

Staying on top of changes in the ACA can be challenging, especially when you have a range of other obligations to accomplish. Read about the latest ACA developments here: The Future of the Affordable Care Act (ACA): Ongoing Developments in the Constitutionality Challenge.

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