IRS Extends Due Dates for 1095-C and 1095-B Forms
On November 18, 2016, the IRS released Notice 2016-70 to extend the due date for employers to furnish Form 1095-C or 1095-B under the Affordable Care Act's employer reporting requirement. Employers will have an extra 30 days to prepare and distribute the 2016 form to individuals. The due dates for filing forms with the IRS are not extended.
Applicable large employers (ALEs), who generally are entities that employed 50 or more full-time and full-time-equivalent employees in 2015, are required to report information about the health coverage they offered or did not offer to certain employees in 2016. 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 2016 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.
Extended Due Dates
Specifically, Notice 2016-70 extends the following due dates:
- The deadline for furnishing 2016 Form 1095-C, or Form 1095-B, if applicable, to employees and individuals is March 2, 2017 (extended from January 31, 2017).
- The deadline for filing copies of the 2016 Forms 1095-C, along with transmittal Form 1094-C (or copies of Forms 1095-B with transmittal Form 1094-B), if applicable, with the IRS is:
- If filing by paper, February 28, 2017.
- If filing electronically, March 31, 2017.
Prior to the IRS announcement, a process existed for employers to file Form 8809 to request a 30-day extension of the due date to furnish forms to individuals. Notice 2016-70 explains that the new extended due date applies automatically so individual requests are not needed. Employers that had already submitted extension requests will not receive a reply.
Notice 2016-70 also provides guidance to taxpayers who do not receive a Form 1095-B or 1095-C by the time they file their 2016 individual tax return.
Lastly, the IRS encourages employers, insurers, and other reporting entities to furnish forms to individuals and file reports with the IRS as soon as they are ready.
Posted on 11/22/2016 2:16 PM by David Moore
ACA compliant plans cost 5 times as much
We have been getting a LOT of calls about help with individual policies. Unfortunately, the carriers no longer want brokers and consultants helping individuals find and manage their health insurance policies. Just for grins I decided to run a quote for my family with what I consider the best individual option available in Nashville, Farm Bureau.
My family had a TRH policy several years ago and while very basic coverage, it was affordable and would cover claims if something happened. I just ran quotes for the same policy I used to have and a similar ACA compliant policy. This is not stellar, Platinum coverage, it's a basic $3,000 deductible plan with a $6,000 out of pocket, not bells and whistles.
My family consists of me (age 55) my wife (age 54) and two sons age 19 and 22. All are healthy non smokers.
The cost for my old Non Compliant policy $447 per month. This policy requires underwriting and is subject to pre-existing conditions. The cost for a new ObamaCare ACA compliant plan, $2,276.62. Yes, that is not a typo and it's not quarterly that is a monthly number. You can run your own quotes at www.fbhealthplans.com
What do I get for the extra $22,000 per year? Guarantee issue with no pre-existing conditions. That is not important to me because we are all healthy. So what if I buy the non-compliant plan? I get to pay the penalty of 2.5% of our adjusted gross income with non deductible dollars. Fortunately we have a small group plan where I pay $1,317 per month for a similar policy.
Broken? You decide
Posted on 11/22/2016 2:15 PM by David Moore