IRS Extends 2020 ACA Deadlines - Bim Group

IRS Extends 2020 ACA Deadlines

( 2 MINUTE READ )

On Friday, October 2, 2020, the IRS released important guidance concerning employers’ obligations under the Affordable Care Act. IRS Notice 2020-76 applies to Internal Revenue Code (IRC) 6055 and 6056 reporting for 2020 and other ACA compliance items.  The notice extends the IRS deadline to furnish 1095-C and 1095-B forms to individuals, and “good-faith” reporting.

The deadline to furnish 1095-C and 1095-B forms has been extended from January 31, 2021, to March 2, 2021. Although an extension is granted, the IRS recommends furnishing notices as soon as possible as the extension is to assist employers with gathering data and completing the forms.  The notice extension does not impact individual returns because the information on 1095-B is not required on an income tax return.

Note: The deadline to file 2020 Forms 1094-B, 1095-B, 1094-C, and 1095-C with the IRS has not been extended. The paper filing deadline is March 1, 2021, or for electronic filing is March 31, 2021. Automatic extensions are not affected by this notice and are still available under the standard rules (see §§ 1.6081-1 and 1.6081-8).

“Good-faith” reporting relief has been extended for reporting under Sections 6055 and 6056 for the 2020 year.  However, the IRS states this would be the final extension of “good-faith” reporting. “Good-faith” reporting applies to entities who report incorrect or incomplete information on the return or statement but can show they made a “good-faith” effort to comply with the requirements under sections 6055 and 6056.

Finally, the Treasury Department and IRS have extended a request for comments in IRS Notice 2020-76 that was initially asked in IRS Notice 2019-63. The agencies seek comments on whether or not an extension of the due date for furnishing statements to individuals would be necessary for future years, and if so, why? They received very few comments, which leads to the belief that an extension may no longer be necessary. Please see IRS Notice 2020-76  for instructions on how to submit comments.

 

 

Recent Insights

October 22, 2020
Webinar

Webinar: Group Health Plan Tasks Employers Should Complete by Plan Year-End and Open Enrollment Considerations

Tuesday, November 10, 2020 2:00 p.m. ET / 11:00 a.m. PT Register Now Join us this month for an overview of the essential group health plan tasks that should be completed by the end of the plan year and considerations for running a compliant open enrollment period. This webinar will: Provide an overview of whether […]
Read more
October 6, 2020
Affordable Care Act (PPACA), Compliance Alert, IRS

IRS Extends 2020 ACA Deadlines

( 2 MINUTE READ ) On Friday, October 2, 2020, the IRS released important guidance concerning employers’ obligations under the Affordable Care Act. IRS Notice 2020-76 applies to Internal Revenue Code (IRC) 6055 and 6056 reporting for 2020 and other ACA compliance items.  The notice extends the IRS deadline to furnish 1095-C and 1095-B forms […]
Read more
October 1, 2020
News

Compliance Questions of the Month

Question: Has the IRS extended good-faith relief when employers furnish or file incorrect or incomplete 2020 Forms 1094/1095 and extended deadlines for furnishing statements to individuals similar to relief provided in prior years? Answer: Yes. For an overview of the good-faith relief that has been extended and the extended deadlines for 2020 forms due in […]
Read more
September 23, 2020
COVID 19, EEOC

EEOC Updates Guidance Related to COVID-19 Testing

( 2 MINUTE READ ) The Equal Employment Opportunity Commission (“EEOC”) recently updated its COVID-19 Guidance Page.  The revised guidance advised that general testing administered by employers consistent with current CDC guidance will meet the ADA’s “business necessity” standard. However, in order for an employer to test only one employee, the employer should have a reasonable objective […]
Read more