All the hubbub over the federal government shutdown has resulted in some confusion and questions about taxpayers and potential tax refunds they may be due. Importantly, and as a reminder, we point out two important facts:
- This latest discussion concerns ONLY individuals and their individual Form 1040 tax filings and refunds. In a departure from past practices, the IRS and White House have announced that individual tax refunds would be processed as usual, despite the government shutdown.
- It has NOTHING to do with employers and requirements for Applicable Large Employers (ALEs) to file certain forms with the government and with their employees to comply with the Affordable Care Act Employer Shared Responsibility requirements in filing Forms 1094-C and 1095-C.
You will recall the IRS did give employers a little breathing room recently extending the deadline for those filings. (See ETC’s Employer Alert on Nov. 30, 2018.) Remember, ALEs are required to report information about the health coverage they offered or did not offer to certain employees in 2018. To meet this reporting requirement, the ALE will furnish Form 1095-C to the employee or former employee and file copies, along with transmittal Form 1094-C, with the IRS.Employers, regardless of size, that sponsored a self-funded (self-insured) health plan providing minimum essential coverage in 2018 are required to report coverage information about enrollees. To meet this reporting requirement, the employer will furnish Form 1095-B to the primary enrollee and file copies, along with transmittal Form 1094-B, with the IRS. Self-funded employers who also are ALEs may use Forms 1095-C and 1094-C in lieu of Forms 1095-B and 1094-B.To recap, the new filing due dates look like this:
- For furnishing 2018 Form 1095-B or Form 1095-C, if applicable, to employees and individuals — March 4, 2019. (It had been Jan. 31, 2019).
- For filing copies of the 2018 Forms 1094-B, 1095-B, 1094-C and 1095-C remains unchanged: If filing by paper, Feb. 28, 2019; if filing electronically, April 1, 2019.
The extended due date applies automatically so employers do not need to make individual requests for the extension. The extension deadline was announced in IRS Notice 2018-94.
Of course, ETC Companies are here to assist you in any way and on any questions you may have related to complying with these ACA requirements. Let us know if we can help you.