IRS extends deadlines for ACA information reporting

/in , /by

Under the Affordable Care Act (ACA), certain employers must report health care plan information to the IRS and employees. Specifically, Forms 1094/1095-B (B Forms) and Forms 1094/1095-C (C Forms) may need to be submitted for the 2017 tax year. The agency recently extended submission deadlines for these forms under some circumstances. Let’s delve into the details.

Background

The B Forms are filed by minimum essential coverage providers — mostly insurers and government-sponsored programs, but also some self-insuring employers and others. The C Forms are filed by applicable large employers (ALEs — generally, employers that employed 50 or more full-time employees or the equivalent during the previous year) to provide information the IRS needs to administer the ACA’s employer shared responsibility and premium tax credit provisions. ALEs with self-insured health plans also report coverage information on Form 1095-C. Forms 1095-B and 1095-C must also be furnished to employees.

General extension

The IRS recently issued Notice 2018-06 to announce limited relief for information reporting on Forms 1094 and 1095 for the 2017 tax year. The deadline for furnishing Forms 1095-B and 1095-C to employees has been extended by 30 days, from January 31 to March 2, 2018. Because of this automatic extension, the discretionary 30-day extension isn’t available, and no further extensions may be obtained.

The notice doesn’t, however, extend the due date for filing Forms 1094-B and 1094-C (and accompanying Forms 1095) with the IRS. Accordingly, the deadlines remain February 28, 2018, for paper filings and April 2, 2018, for electronic filings. (Electronic filing is mandatory for employers required to file 250 or more Forms 1095.) However, filers may obtain an automatic 30-day extension by filing Form 8809 on or before the regular due date.

Good faith relief

Also, the IRS will again provide penalty relief for employers that can show they have made good faith efforts at compliance. No penalties will be imposed on employers that report incorrect or incomplete information — either on statements furnished to employees or returns filed with the IRS — if they can show they made good faith efforts to comply with the reporting requirements.

The notice specifies that the relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other required information. Penalty relief isn’t available to employers that:

  • Fail to furnish statements or file returns,
  • Miss an applicable deadline, or
  • Otherwise don’t make good faith efforts to comply.

Evidence of good faith efforts may include gathering necessary data and transmitting it to a third party to prepare the required reports, testing the ability to transmit data to the IRS, and taking steps to ensure compliance for the 2018 tax year.

Total compliance

If your organization self-insures or is defined as an ALE for the 2017 tax year, make sure you’re in total compliance with the ACA’s information reporting requirements. Our firm can help you with the pertinent details.

Don’t be a victim of tax identity theft: File your 2017 return early

/in , , , , /by

The IRS has just announced that it will begin accepting 2017 income tax returns on January 29. You may be more concerned about the April 17 filing deadline, or even the extended deadline of October 15(if you file for an extension by April 17). After all, why go through the hassle of filing your return earlier than you have to?

But it can be a good idea to file as close to January 29 as possible: Doing so helps protect you from tax identity theft.

All-too-common scam

Here’s why early filing helps: In an all-too-common scam, thieves use victims’ personal information to file fraudulent tax returns electronically and claim bogus refunds. This is usually done early in the tax filing season. When the real taxpayers file, they’re notified that they’re attempting to file duplicate returns.

A victim typically discovers the fraud after he or she files a tax return and is informed by the IRS that the return has been rejected because one with the same Social Security number has already been filed for the same tax year. The IRS then must determine who the legitimate taxpayer is.

Tax identity theft can cause major headaches to straighten out and significantly delay legitimate refunds. But if you file first, it will be the tax return filed by a potential thief that will be rejected — not yours.

The IRS is working with the tax industry and states to improve safeguards to protect taxpayers from tax identity theft. But filing early may be your best defense.

W-2s and 1099s

Of course, in order to file your tax return, you’ll need to have your W-2s and 1099s. So another key date to be aware of is January 31 — the deadline for employers to issue 2017 Form W-2 to employees and, generally, for businesses to issue Form 1099 to recipients of any 2017 interest, dividend or reportable miscellaneous income payments.

If you don’t receive a W-2 or 1099, first contact the entity that should have issued it. If by mid-February you still haven’t received it, you can contact the IRS for help.

Earlier refunds

Of course, if you’ll be getting a refund, another good thing about filing early is that you’ll get your refund sooner. The IRS expects over 90% of refunds to be issued within 21 days.

E-filing and requesting a direct deposit refund generally will result in a quicker refund and also can be more secure. If you have questions about tax identity theft or would like help filing your 2017 return early, please contact us.

The 2018 tax filing season will begin on Jan. 29, the IRS announced

/in , , , , /by

January 29, 2018

That’s the date the IRS will begin accepting electronic and paper returns (though many tax professionals and software companies will accept returns earlier). Processing returns will begin in mid-Feb. The earliest that refunds claiming the earned income credit or additional child tax credit will be available will be Feb. 27. The IRS expects over 90% of refunds to be issued within 21 days. The last date to file without an extension is April 17, 2018. Here’s more: http://bit.ly/2AsE8U9

IRS has extended a Deadline

/in , , /by

The IRS has extended the due date for the 2017 information reporting requirements under the Affordable Care Act, for insurers, self-insuring employers, and certain other coverage providers. Specifically, the date is extended for furnishing to individuals the 2017 Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage). The new due date is March 2, 2018 (originally Jan. 31, 2018). No extension is granted for furnishing forms to the IRS, which are due on Feb. 28, 2018. (Notice 2018-6)