The IRS has issued REG-109128-21, which:
— Extends the due date to March 2, 2022, for the TY2021 IRS Form 1095-B/C to be sent to employees (was previously January 31, 2022).
— Confirms that the due date for filing the 1095 Forms with the IRS remains the same:
○ February 28, 2022 (if filing paper copies)
○ March 31, 2022 (if filing electronically)
— Eliminates the Transitional Good-Faith relief for ACA Reporting. Expert Tip: incorrect or missing data, including EINs and dates of birth, may result in IRS penalties.
Check out BenefitScape’s ACA Compliance Update for Tax Year 2021, which describes the due dates and relief in more detail.
Note: Although the proposed IRS Guidance will not become final until published in the Federal Register, the IRS indicates employers may rely upon the proposed regulations. Also note: It is not yet clear how these extensions will apply for states with their own individual mandate and reporting requirements—California, Massachusetts, New Jersey, Rhode Island, Vermont, and the District of Columbia. We will post updates to this site as the states indicate their deadlines.
What does the extension mean for you?
The IRS proposed regulations permanently delay the deadline to deliver Form 1095-B/C to employees by 30 days from January 31 to March 2 (except in a leap year). If the due date falls on a weekend or holiday, the form is due the next business day.
The extension applies to anyone who distributes Forms 1095-B/C to employees. This extension is automatic and does not require the submission of any request or other documentation to the IRS.
Note: The previous provision allowing employers to request a 30-day extension to furnish Forms 1095-B/C will not apply to the newly extended due date and requests will not be entertained.
You Have a Little More Time to Furnish Forms, But Don’t Wait to File!
While the IRS is providing an extension, they encourage employers to furnish TY2021 Forms 1095-B/C as soon as possible. All deadlines must be carefully observed to avoid penalties.
Transitional Good-Faith Relief Is Ending
In the past, the IRS has provided penalty relief for failure to accurately complete Forms 1095-B/C as long as employers made a good faith effort at compliance. However, relief for inaccuracies will no longer be granted by the IRS. Starting this year, missing or inaccurate data may result in penalties—and relief will no longer be provided based on employer effort, behavior, or intent!
How BenefitScape Can Help
Like the IRS, BenefitScape recommends that you get started today on your ACA Reporting and Compliance responsibilities. Compiling and transforming data and furnishing Forms 1095-B/C is a complex process involving significant time and resources. Our team can support you in completing your ACA responsibilities and avoiding steep penalties by providing accurate and timely results. Get started today by calling us at (508) 655-3307, or email Kim at email@example.com.
Attachment(s): ACA Compliance Update for Tax Year 2021