Tax Alert: IRS Extends Deadline for Providing 1095s to Employees

December 7, 2021

The Internal Revenue Service (IRS) has issued an advance copy of proposed regulations allowing employers more time to provide Forms 1095-B and 1095-C to applicable individuals. Employers now have until March 2, 2022 to furnish forms to employees. Importantly, the due dates for filing these same forms with the IRS was not extended, and employers that electronically file are still required to file their ACA information reporting forms with the IRS by March 31, 2022.

Paragraph m of the proposed regulations makes it clear that although some portions of the notice will go into effect earlier or later, “applicable large employer[s] may choose to apply [the extension] for calendar years beginning after December 31, 2020.” Thus, although these are still proposed regulations, employers may rely on them for the upcoming reporting cycle.

The proposed regulations also would provide an automatic extension for applicable large employers for future years as well, such that Forms 1095 furnished to responsible individuals will be timely if furnished no later than 30 days after January 31 of the calendar year following the calendar year in which minimum essential coverage is provided. This eliminates the previously required good cause written application for an employer to qualify for an extension.

Lastly, it is very important to remember that many employers also have state-level ACA reporting responsibilities across the country. Some of those state deadlines are tied directly to IRS deadlines such that they will also be extended by the proposed regulations. However, the mandates in Massachusetts, California and Rhode Island require form distribution by January 31st, and therefore will not automatically follow the extension of the federal deadline. Employers with employees in any of these states should be aware that their state-level responsibilities may still require that the Forms 1095 are furnished by the end of January, despite the new automatic extension at the federal level.

If you have any questions about this extension, or any other ACA topic, please contact your First Advantage account manager or your legal counsel. First Advantage will stay abreast of any future updates and continue to keep you informed of the ever evolving healthcare landscape.

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