ACA News & Publications
ACA Pathways: 2019 Employer Reporting Forms Finalized
December 13, 2019
The Internal Revenue Service (IRS) has released final 2019 forms for reporting under Internal Revenue Code (Code) Sections 6055 and 6056. Final instructions for 2019 were also released.
- 2019 Forms 1094-C and 1095-C (and instructions) will be used by applicable large employers (ALEs) to report under Code Section 6056, as well as for combined Code Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.
- 2019 Forms 1094-B and 1095-B (and instructions) will be used by entities reporting under Code Section 6055, including self-insured plan sponsors that are not ALEs.
Note that Section 6055 reporting is still required despite the fact that the individual mandate penalty has been reduced to $0. Transition relief from penalties is available for a reporting entity that does not furnish a Form 1095-B to responsible individuals if the entity meets certain requirements. Specifically, the reporting entity must prominently post a notice on its website stating that a copy of the 2019 Form 1095-B is available upon request (along with certain contact information); and provide the 2019 Form 1095-B to individuals within 30 days of any request it receives.
2019 Final Forms
The 2019 forms and instructions are substantially similar to the 2018 versions, with the following exceptions.
Forms 1095-CThe revised version of the Form 1095-C clarifies that the “Plan Start Month” box in Part II will remain optional for 2019. The IRS previously indicated that this box may have been mandatory for the 2019 Form 1095-C.
Instructions to the Forms 1095-B and Forms 1095-C.Both versions of the instructions were revised to:
- Remove references to the individual mandate penalty;
- Indicate that the furnishing deadline has been extended to March 2, 2020;
- Include the extension of good-faith penalty relief for incorrect or incomplete information returns filed or furnished in 2020; and
- Describe additional penalty relief for failures to furnish under Section 6055, in certain circumstances.
The instructions were also updated to include penalty amounts for 2019 reporting, and include the extension of good-faith penalty relief for incorrect or incomplete information returns filed or furnished in 2020.
- The penalty for failure to file a correct information return is $270 for each return for which the failure occurs, with the total penalty for a calendar year not to exceed $3,339,000.
- The penalty for failure to provide a correct payee statement is $270 for each statement for which the failure occurs, with the total penalty for a calendar year not to exceed $3,339,000.
- Special rules apply that increase the per-statement and total penalties if there is intentional disregard of the requirement to file the returns and furnish the required statements.
The instructions note that Section 6055 reporting is still necessary because it helps the IRS administer premium tax credit eligibility. An individual who is eligible for certain types of minimum essential coverage may not be eligible for the premium tax credit.
Action Steps
Employers should become familiar with these forms for reporting for the 2019 calendar year. Individual statements must be furnished by March 2, 2020, and IRS returns must be filed by February 28, 2020 (March 31, 2020, if filed electronically).
For More Information
For more information about this ACA Pathways or about any other health care reform-related provisions, please contact your Burnham Benefits consultant or Burnham Benefits at:
949.833.2983
inquiries@burnhambenefits.com
Burnham Benefits does not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with the Patient Protection and Affordable Care Act and other applicable federal and state law requirements, and is based on Burnham Benefit’s interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.