With Thanksgiving approaching, the IRS gave us something to be thankful for. On November 18th, the IRS released Notice 2016-70 which extends the due date for furnishing to individuals the 2016 Form 1095-B, Health Coverage, and the 2016 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2017, to March 2, 2017.
It is important to note that this notice does not provide additional time for employers, insurers, and other providers of minimum essential coverage to file with the IRS the 2016 Forms 1094-B, 1095-B, 1094-C, and 1095-C which retains a deadline of February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically.
This notice also extends transition relief from penalties under sections 6721 and 6722 to reporting entities that can show that they have made good faith efforts to comply with the information-reporting requirements under sections 6055 and 6056 for 2016 (both for furnishing to individuals and for filing with the IRS) for incorrect or incomplete information reported on the return or statement. This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement.
No relief is provided in the case of reporting entities that do not make a good-faith effort to comply with the regulations or that fail to file an information return or furnish a statement by the due dates. In determining good faith, the IRS will take into account whether an employer or other coverage provider made reasonable efforts to prepare for reporting the required information to the IRS and furnishing it to employees and covered individuals, such as gathering and transmitting the necessary data to an agent to prepare the data for submission to the IRS, or testing its ability to transmit information to the IRS. In addition, the IRS will take into account the extent to which the employer or other coverage provider is taking steps to ensure that it will be able to comply with the reporting requirements for 2017.
To read the notice in its entirety, CLICK HERE.
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