IRS Extends Good Faith Compliance Reporting Standard and Deadline to Furnish Individual Statements

Nov 2016 21 | Posted by liz.smith

On November 18, 2016 the Internal Revenue Service (IRS) issued Notice 2016-70. This notice extends the due date for furnishing 2016 Form 1095-C statements to employees by 30 days, from January 31, 2017 to March 2, 2017. It also extends the deadline for health insurance issuers and other providers of Minimum Essential Coverage to furnish 2016 Form 1095-B statements by 30 days, from January 31, 2017 to March 2, 2017. In view of this automatic extension, provisions allowing employers to seek extensions to furnish Forms 1095-C statements by letter will not apply to the extended due date. Employers are also encouraged to furnish 2016 statements as soon as they are able.

Importantly, this notice does not extend the due date for filing with the IRS. Forms 1094-C and 1095-Cs are still due to IRS by February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically. Employers can request an automatic 30 day extension on the deadline for filing with IRS by submitting a Form 8809 or an electronic filing hardship waiver by submitting Form 8508.

This notice also extends good-faith transition relief from reporting penalties to the 2016 information-reporting year. However, no relief is provided in the case of reporting entities that do not make a good-faith effort to comply or that fail to file an information return or furnish a statement by the due dates (as extended under the notice).