Regulatory News: 1095 Forms
*Update to previous notice: The extended deadline is March 2, 2021, not March 31, 2021. The body of this information has been updated to reflect this change.
The IRS has extended relief from reporting penalties and extended deadlines to furnish forms, similar to guidance issued last year. Reporting using these forms is required by Sections 6055 and 6066 of the Code, added by the Affordable Care Act to apply, respectively, to health insurance issuers, self-funded employers, and government entities that offer minimum essential coverage and to applicable large employers subject to the employer shared-responsibility provision.
Extension to furnish 1095-B and 1095-C to Individuals
Filing and furnishing of these forms for calendar year 2020 is currently required by January 31, 2021.The IRS has extended the deadline to furnish Forms 1095-B and 1095-C to employees to March 2, 2021.
The notice does not extend the deadlines to file Forms 1094-B, 1095-B, 1094-C, or 1095-C with the IRS. Automatic extensions remain available for the filing of those forms, so long as insurers and employers submit a Form 8809 by the due date.Background
- Because Congress set the individual mandate penalty to $0 beginning in 2019, the IRS determined that individuals do not need a Form 1095-B to file their tax return or determine their tax liability. The IRS will not penalize entities that fail to provide individuals with a Form 1095-B if:
- the entity posts a prominent notice on its website that instructs individuals on how to request a Form 1095-B; and
- the entity provides the Form 1095-B to an individual within 30 days of their request.
As we did last year, HealthPartners will not mail 1095-B forms to fully-insured commercial members in 2021 for the 2020 tax year.
We will take the steps above to post information on the HealthPartners public website by February 1, 2021 and provide forms to individuals who request them within 30 days.
Important to note:
- The guidance does not affect requirements to file information with the IRS (i.e., it only affects the reporting requirements for providing this information to individuals). Thus, entities must still file Forms 1094-B, 1095-B, 1094-C, and 1095-C with the IRS on schedule. HealthPartners will still provide reports through the employer portal to assist employers with their reporting requirements.
- Because self-insured employers combine their 1095-C and 1095-B requirements on one form, they do not get the same relief from sending notices to individuals covered by their plan. Self-insured employers should continue sending the forms to meet their employer and plan reporting requirements.