IRS Finalizes Deadline Extension for Furnishing ACA Statements
December 28, 2022
Important Dates:
- 30 Days From January 31: Individual statements are due 30 days after Jan. 31 of the year following the calendar year to which the statement relates.
- February 28: Annual deadline for filing with the IRS on paper.
- March 31: Annual deadline for filing with the IRS electronically.
This article pertains to employers over 50 employees.
On Dec. 12, 2022, the IRS released a final rule that extends the annual furnishing deadlines for Sections 6055 and 6056 reporting under the Affordable Care Act (ACA). This rule finalizes guidance that was proposed by the IRS in December 2021 with minor clarifications. Specifically, the rule:
- Finalizes the 30-day automatic extension to the due date for furnishing statements to individuals under Sections 6055 and 6056; and
- Confirms the availability of an alternate method for furnishing statements to individuals under Section 6055 for every year in which the individual mandate penalty is zero. Under this relief, employers generally will only have to provide Form 1095-B to covered individuals upon request.
The final rule also provides that minimum essential coverage (MEC) does not include Medicaid coverage that is limited to COVID-19 testing and diagnostic services provided under the Families First Coronavirus Response Act (FFCRA).
The due date for filing forms with the IRS under Sections 6055 and 6056 remains unchanged. This means that forms must generally be filed with the IRS by Feb. 28 of the year following the calendar year to which the statement relates (or March 31, if filing electronically).
Action Steps:
The final rule does not provide any new relief for employers because they were permitted to rely on the IRS’ proposed guidance beginning with the 2021 calendar year. Due to the 30-day automatic extension, employers subject to ACA reporting must furnish statements for the 2022 calendar year by March 2, 2023. Also, because the individual mandate penalty is zero, employers with self-insured plans that are subject to reporting under Section 6055 may use the alternate method of furnishing statements to individuals.
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