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The Wagner Law Group

The Wagner Law Group, A Professional Corporation, is a nationally recognized ERISA & employee benefits, estate planning, employment, labor & human resources practice. 

 

Established in 1996, The Wagner Law Group has 26 attorneys engaged exclusively in employee benefits, estate planning and employment law. Six of our attorneys are AV rated by Martindale-Hubbell as having very high to preeminent legal abilities and ethical standards. The firm is among the largest ERISA boutiques in the country. Our practice is national in scope, with clients in more than 40 states and several foreign countries.

 

 

 

 

Contact Info

The Wagner Law Group

 

  Integrity | Excellence

  

Boston 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110


Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418

   

Tampa

Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 

 

San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104

 

St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
100 South 4th Street, Suite 550
St. Louis, MO  63102 

 

www.wagnerlawgroup.com

 

 

 

 

December 1, 2016

 

 Health and Welfare Law Alert

 

 

 

   IRS Extends Deadline for ALEs to Distribute 2016 ACA Reporting Forms to Individuals

 

 

 

 

 

The IRS has issued Notice 2016-70, which provides a 30-day extension to the deadline for Applicable Large Employers ("ALEs") to distribute the 2016 Affordable Care Act ("ACA") reporting forms to employees and covered individuals.

 

NOTE: This extended deadline applies only to distributing the 2016 ACA reporting forms to employees and covered individuals and not to the deadline for filing the forms with the IRS.

 

Background. ALEs are required to file Forms 1094 and 1095 with the IRS to report their compliance with the ACA's employer shared responsibility provisions (i.e., the employer mandate). In particular, Forms 1094 and 1095 provide certain information to the IRS and taxpayers regarding individuals who are covered by Minimum Essential Coverage ("MEC") and, therefore, not subject to the ACA's individual shared responsibility provisions (i.e., the individual mandate).

 

For fully-insured group health plans, the insurance carrier is responsible for furnishing the Forms 1095-B to the IRS and employees, and the employer is responsible for furnishing Forms 1095-C to the IRS. For self-funded group health plans, the employer/sponsor is generally responsible for issuing and filing both Forms 1095-B and 1095-C.

 

Guidance. The original deadline for ALEs to distribute 2016 Forms 1095-B and Forms 1095-C to individuals was January 31, 2017. The new deadline is March 2, 2017, and Notice 2016-70 confirms that the IRS will not grant additional 30-day extensions.

 

As explained above, Notice 2016-70 does not extend the deadlines for ALEs to file the 2016 ACA reporting forms with the IRS. ALEs filing less than 250 returns may file in paper. The deadline for paper filing is February 28, 2017. ALEs filing 250 or more returns must file electronically through the IRS's AIR system. The deadline for electronic filing is March 31, 2017.

 

For the 2015 filing cycle, the IRS provided ALEs with transition relief from penalties related to incomplete or incorrect forms if the ALE could show that it made good faith efforts to comply with the reporting requirements. In particular, this relief applied to missing and inaccurate information required on the forms, but not to untimely filed forms. The IRS originally indicated that this transition relief would not apply to the 2016 ACA reporting forms. Nonetheless, Notice 2016-70 confirms that this relief also applies for the 2016 filing cycle.

 

The extended distribution deadline for the 2016 ACA reporting forms will likely result in some taxpayers not receiving their Form 1095 before they are ready to file their federal income taxes. Notice 2016-70 explains that taxpayers may rely on other alternative information (provided by employers or group health coverage providers) to determine eligibility for premium tax credits and to confirm that MEC was maintained during the entire 2016 tax year.

 

Employer Takeaway. ALEs are advised to use the additional time provided by the extended deadline for furnishing the 2016 ACA reporting forms to ensure that the forms are accurate and complete. This is because filers will have less time between the distribution deadline and the filing deadline to make any required corrections.

 

Notice 2016-70 is available at:https://www.irs.gov/pub/irs-drop/n-16-70.pdf

 

 

 

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This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.