Will there be 2018 ACA compliance relief for employers?

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Historically, the IRS has provided relief to US employers with regards to ACA compliance by:

  • Allowing a “good-faith effort” as it relates to ACA Form 1095-C provided to employees and the IRS.
  • Extending the filing deadline for providing forms to employees by 30 days.

See our post on last year’s relief here.

So the big question is: Will the IRS do the same for 2018 forms? Maybe.

The IRS Information Reporting Advisory Committee (IRPAC) published a report in October requesting that the IRS apply this relief to 2018 forms as well:

“A. Reporting by Insurance Companies and Applicable Large Employers under IRC §6055 and §6056 IRPAC would like to thank the IRS for adopting several of our prior year recommendations dealing with §§ 6055 and 6056 during tax years 2017/2018 including the extension of good faith efforts penalty relief for reporting of incorrect or incomplete information reported on 2017 Forms 1095-B and Forms 1095-C filed in 2018.

IRPAC recommends good faith efforts penalty relief for reporting of incorrect or incomplete information reported on returns, as well as a 30-day delay for furnishing forms due January 31, 2019, is extended to the 2018 Forms 1095-B and Forms 1095-C filed in 2019.”

There were some other topics addressed by IRPAC around ACA as it pertains to US Employers:

1. The Tax Cuts and Jobs Act has set the individual penalty for not having ACA qualified health insurance to zero effective with the 2019 calendar year. IRPAC has requested that the IRS provide guidance on the implications of this change as soon as possible.

“In addition, IRPAC recommends that IRS issue guidance as soon as practical regarding changes, if any, to reporting requirements due to the reduction of the Individual Shared Responsibility Payments to $0 for calendar year 2019.”

2. The final ACA topic addressed in the IRPAC report relates to challenges that employers have experienced when changing ACA service providers. Currently, if forms are submitted by a particular service provider, they cannot be corrected by a subsequent service provider, should the employer want to change providers.

“Finally, as the compliance environment for ACA reporting becomes more mature, IRPAC recommends that the IRS adopt new procedures for submission of prior year corrections through the AIR system by which a new transmitter will be able to submit corrections that were previously transmitted by a filer’s prior service provider.”

As always, Integrity Data endeavors to be your partner in staying compliant with the Affordable Care Act. Continue to follow our blog as we obtain more information in this area.

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