The IRS has extended the deadline by 30 days for Forms 1095-B and 1095-C to be provided to employees. This is the second consecutive year the IRS has extended the deadline, allowing employers more time to disseminate these forms to their employees. The new deadline for distribution of the forms is on or before March 2, 2018.
This extension does not affect the deadline for submitting Forms 1095-B and 1095-C to the IRS. Those deadlines remain set at February 28, 2018, or April 2, 2018 if filing electronically. However, 30-day extensions are available for employers who complete Form 8809 on or before the due date. The IRS grants these extensions automatically with no explanation for the extension required.
The IRS requires employers to furnish Forms 1095-B and 1095-C to employees so that the employees may determine their eligibility for tax credits on their individual income tax returns for each month of the year. The rules apply to “Applicable Large Employers,” which the IRS defines as employers averaging at least 50 full-time employees, including full-time equivalent employees, during the previous calendar year.
Employers should be prepared to answer questions from employees regarding their insurance coverage and tax returns for 2017. Employers should also note that the repeal of the Affordable Care Act’s individual mandate, part of the GOP tax reform bill passed in December 2017, does not take effect until 2019.
Attorneys at FHKAD routinely advise employers. For more information about these deadlines or other employment matters, contact Daniel Sabol at (614) 221-1216 or dsabol@fishelhass.com.