What IRS transition relief means for 2019 ACA reporting.
On December 2, 2019, the IRS issued a notice that changes ACA reporting standards for employers. Notice 2019-63 comes as a result of the IRS recognizing that employers may need additional time to prepare the appropriate ACA documentation and paperwork. Curious to see what IRS transition relief means for you? Then here is an overview of the changes included in Notice 2019-63.
- Deadline Adjustment for Sections 6055 and 6056
For employers who need to file furnishing forms under Sections 6055 and 6056 of the Internal Revenue Code, the due date for these forms has been moved back. Notice 2019-63 offers employers an additional 31 days to prepare Forms 1095-B and 1095-C. This means that the 2019 filing date has moved from January 31, 2020, to March 2, 2020. Please note that the IRS has not changed the due date for Forms 1094-B, 1095-B, 1094-C, or 1095-C. These Forms are still due by February 28, 2020, for businesses filing on paper, and March 31, 2020, for businesses filing electronically.
- Good-Faith Transition Relief from Penalties
Notice 2019-63 also offers transition relief to reporting entities that have been penalized for providing inaccurate or incomplete information. This relief applies to missing or inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return of statement. Relief will not be provided for reporting entities that do not make a good-faith effort to comply with regulations. Additionally, entities that fail to file an information return or furnish a statement by the stated due dates will not qualify for relief.
- Additional Penalty Relief Under Section 6055
Finally, Notice 2019-63 reduces the individual mandate penalty to zero. These changes mean that an individual does not need the information on Form 1095-B in order to calculate his or her federal tax liability or file a federal income tax return. This means that, in certain cases, there will be no penalties for filing entities that fail to furnish a statement to individuals as required under Section 6055 of the Internal Revenue Code.
Want a more detailed look at what IRS transition relief means for your 2019 ACA reporting? Then read Notice 2019-63 HERE. Want to stay up to date on all the latest employee benefits news? If so, then contact the experts at CIA Insurance and Risk Management for the answers you need today.
Post written by Janelle Morck, Vice President | Employee Benefits Risk Management (ERM)
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