In the recently released Notice 2018-94, the IRS provided reporting relief for employers for the 2018 calendar year. Here are the key points.
The due date for providing Forms 1095-C or 1095-B to employees and individuals is extended 32 days to March 4, 2019
- Despite the extension, the IRS is encouraging reporting entities to furnish Form 1095-B and 1095-C statements as soon as they are able.
- The IRS will not grant an additional 30-day extension beyond this deadline.
- Notice 2018-94 does not extend the deadline for filing the 2018 forms with the IRS. The IRS filing deadline remains April 1, 2019 (or February 28, 2019 if not filing electronically).
The “Good Faith” Compliance Standard is Extended to 2018
- This means that employers and coverage providers who work in good faith to complete the forms will not be assessed penalties due to missing or inaccurate information.
- In determining good faith, the IRS will take into account whether the employer or coverage provider made reasonable efforts to prepare for the reporting requirements, such as gathering and transmitting the data to appropriate parties. The IRS will also take into account the reporting entity’s efforts in preparing to report about health coverage for 2018 by the 2019 IRS deadline.
Impact on Individual Taxpayers
- The IRS recognizes that taxpayers may not receive their Form 1095-B or Form 1095-C by the time they are ready to file their 2018 income tax returns due to the deadline extension. Like last year, taxpayers do not need to wait to receive their forms in order to file their returns.
- Taxpayers may rely on other information received from their employer or insurer in attesting on their tax returns as to whether they had “minimum essential coverage” as required. They do not need to send their Form 1095-B or Form 1095-C to the IRS, but should keep that information with their tax records.
The extension relates to 2018 reporting only. The IRS is said to be considering whether and how the reporting requirements should be modified for future years.
For additional information, see IRS Notice 2018-94 or contact our team at VCG’s Vantage.