IRS extends certain ACA reporting relief

December 7, 2018

 

Good news for employers beginning to prepare Forms 1094 and 1095 for the 2018 ACA reporting season. Through our ongoing discussions in Washington, Alight, along with industry groups, requested this relief on behalf of employers and is glad to see this IRS response.

The Internal Revenue Service has released guidance further extending certain ACA reporting transitional relief that has applied in prior years. IRS Notice 2018-94, issued on November 29, applies two things to the 2018 ACA reporting: 

“Good faith transition relief” from Internal Revenue Code (IRC) Sections 6721 and 6722 penalties for the 2018 reporting year. The relief is important because it provides some limited, but significant flexibility for employers that need to correct Forms 1094 and 1095 in certain situations. Penalties under Sections 6721 and 6722 are generally related to incomplete or inaccurate information reported on certain tax return forms, in this case Forms 1094 and 1095. The continuation of good faith transition relief means that if the reporting entity can demonstrate that a good faith effort was made to comply with the IRC 6055/6056 requirements, it will not be penalized for incomplete or inaccurate data. The transition relief does not apply to penalties tied to timeliness, so in order to claim the relief, original 2018 forms must be sent to employees/responsible individuals and filed with the IRS by the applicable deadline (including the applicable extension).

Automatic extension of the deadline to deliver Forms 1095-B and 1095-C to individuals. The Notice automatically extends the due dates for furnishing Forms 1095-B and 1095-C to individuals from January 31, 2019, to March 4, 2019. The due date for electronic filing of the Forms 1094 and Forms 1095 with the IRS has not been extended and remains April 1, 2019. As has been our approach in past years when the extension was available, Alight will proceed with the standard timing on behalf of our clients and furnish tax forms for individuals by January 31, 2019. 

Connect with Alight if you have questions, or would like to learn more about 2018 ACA Reporting Requirements.

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