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.
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.
The 2019 forms and instructions are substantially similar to the 2018 versions, with the following exceptions.Forms 1095-C
The 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:
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 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.
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).
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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.