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IRS Extends Certain Deadlines, Penalty Relief for Health Coverage Forms

July 10, 2020 Priya Comments Off

Health insurance providers (including employers and health insurance companies) now have until March 2, 2020, to furnish to individuals Form 1095-B, Health Coverage, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. This is a 30-day extension from the original due date of January 31, 2020. Employers and providers must furnish Forms 1095-B and 1095-C to employees or covered individuals regarding the health care coverage offered to them.

Comment

The due dates for employers and insurers to file the 2019 Forms 1094-B, 1095-B, 1094-C, or 1095-C with the IRS are not extended by this relief. However, the relief does not affect the normal rules for an automatic extension of time to file.

Because of this automatic extension to March 2, 2020, the provisions allowing the IRS to grant an extension of up to 30 days to furnish Forms 1095-B and 1095-C will not apply to the extended due date. Further, the IRS will not formally respond to requests to extend the furnishing due date.

Penalty Relief

For 2019, the IRS will not assess a penalty under Code Sec. 6722 against reporting entities for failing to furnish a Form 1095-B to responsible individuals if the reporting entity does both of the following:

  • posts a notice prominently on its website stating that responsible individuals may receive a copy of their 2019 Form 1095-B upon request, accompanied by an email address, a physical address to which a request may be sent, and a telephone number that responsible individuals can use to contact the reporting entity with any questions; and
  • furnishes a 2019 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received.

Similar furnishing relief also applies to applicable large employer (ALE) members that are required to furnish Form 1095-C to any employee enrolled in the ALE member’s self-insured health plan who is not a full-time employee for any month of 2019, if the ALE member meets the requirements. Penalties will continue to be assessed, however, for any failure by ALE members to furnish Form 1095-C to full-time employees enrolled in self-insured health plans.

The IRS also has extended relief from penalties under Code Sec. 6721 and Code Sec. 6722 to reporting entities that report incorrect or incomplete information on the return or statement, if the entity can show that it made good-faith efforts to comply with the information reporting requirements for 2019. This relief applies both for furnishing to individuals and for filing with the IRS. Reporting entities that fail to file an information return or furnish a statement by the extended due dates, except as otherwise provided in Notice 2019-63, are not eligible for relief.

Request for Comments

The IRS has requested comments as to whether an extension of the due date for furnishing statements to individuals under Code Sec. 6056, and an extension of good-faith reporting relief under Code Sec. 6056, would be necessary for future years and, if so, why. Taxpayers and reporting entities are requested to submit comments electronically via the Federal eRulemaking Portal at www.regulations.gov. Alternatively, taxpayers and reporting entities may mail comments to: Internal Revenue Service Attn: CC:PA:LPD:PR ( Notice 2019-63) Room 5203 P.O. Box 7604 Ben Franklin Station Washington, D.C. 20044.