Draft 1095-B/C and 1094-B/C Forms and Instructions for Tax Year 2017 Affordable Care Act (ACA) Compliance and Reporting were recently released by the Internal Revenue Service (IRS)
Applicable large employers, (ALE) are subject to the information reporting requirements under the ACA, which requires those employers to report information about the health care coverage, if any, they offered to full-time employees, in order to administer the employer mandate in Internal Revenue Code (IRC) Section 4980H.
The IRS has released the following Forms:
While the 2017 draft Forms are similar to the final 2016 versions, they should be reviewed by plan administrators and third party administrators (TPAs) that are responsible for completing the filings.
Revisions to Draft Forms 1094-C and 1095-C:
- On Form 1094-C, line 22, box C (previously labeled “Section 4980H Transition Relief”) is designated “reserved” because the transition relief from the employer mandate is no longer applicable for 2017. Similarly, in Part III, column (e) (previously labeled “Section 4980H Transition Relief Indicator”), is now also labeled “reserved”.
- On Form 1095-C, no substantive changes were made to the form itself. However, the IRS modified the “Instructions for Recipient” to include a new paragraph which provides a link to the ACA’s tax provisions for individuals and families.
Several forms of transition relief were available to some employers under IRC Section 4980H for 2016. Transition relief is not available for 2017, and as a result, the draft instructions and forms have been revised to remove mention of Section 4980H transition relief.
Other Notable Revisions:
- Confirmation that Forms 1095-B/C for Tax Year 2017 must be furnished to employees by January 31, 2018, and Forms 1094-C & 1095-C must be eFiled with the IRS by April 2, 2018 because March 31st falls on a Saturday (Please note: If an ALE has less than 250 FTE Employees, they can paper file their Forms by February 28, 2018).
- Clarification that there is no specific Series 2 indicator code to enter on line 16 of Form 1095-C to indicate that a full-time employee either did not enroll in, or waived the coverage offered.
- Description of adjusted information reporting penalty amounts for Tax Year 2017 Reporting including absent waivers for reasonable cause and not willful neglect.
When will Final Forms be available?
Final 1095-B/C and 1094-B/C Forms and Instructions for Tax Year 2017 should be released sometime before the end of the year.