The IRS, after saying last year not to expect future extensions to the Jan. 31 deadline for filing Affordable Care Act (ACA) reporting forms to employees, has changed its mind, and employers now have until March 2 to furnish Forms 1095-B or 1095-C.
In new proposed regulations announced at the end of January, the IRS may permanently extend by 30 days the deadline for employers to distribute these statements to full-time employees. The purpose is to indicate whether their employer-sponsored health insurance met ACA requirements for minimum essential coverage.
The proposal says employers and insurers may take advantage of the extension for distributing 2021 reporting forms to employees before the rule is finalized, starting with delivering 2021 forms in early 2022. However, it does not change the due dates for filing these forms with the IRS.
The ACA requires applicable large employers (ALEs) — employers that during the prior year had 50 or more full-time employees or full-time equivalents — to submit reporting forms to the IRS and to distribute these forms to employees by the following deadlines, with a couple of asterisks:
- 1095 Forms to employees: March 2
- Paper filing* with the IRS: Feb. 28**
- Electronic filing with the IRS: March 31**
*Employers that file 250 or more information returns with the IRS must file the returns electronically.
**Filers can obtain a 30-day extension on filing forms with the IRS by submitting Form 8809, Application for Extension of Time to File Information Returns, by the filing due date.
Form 1095-B is used by insurance companies offering fully insured health coverage through employer-sponsored plans, and by small, self-funded employers.
Form 1095-C is used by ALEs that sponsor self-funded health plans.
The companion forms, 1094-B and 1094-C, are the transmittal forms that also get filed with the IRS.
Related: Who Needs to File Forms 1094 and 1095?
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