As a holiday gift to employers, in Notice 2018-6, the IRS provided an extension for providing 2017 Forms 1095-C to employees. The extended deadline is March 2, 2018. The IRS did not extend the deadline for filing Forms 1094-C and 1095-C with the IRS. The IRS has also extended the “good faith effort” standard to 2017 reporting.
Background – Rules Applicable if the Extension Had Not Been Issued. Under Sections 6055 and 6056 of the Internal Revenue Code, each Applicable Large Employer Member (“ALEM”) is required to:
- To employees.
- By January 31, 2018, provide a copy of Form 1095-C to each full-time employee (“FTE”) and each non-FTE who is covered under the ALEM’s self-funded group medical plan.
- To the IRS.
- By February 28, 2018, file with the IRS a paper copy of Form 1094-C, along with copies of all employees’ Forms 1095-C; or
- By April 2, 2018, file with the IRS an electronic copy of Form 1094-C, along with copies of all employees’ Forms 1095-C.
The IRS indicated that (i) an employer could apply for a 30-day extension of the January 31 date, which the IRS may or may not grant; and (ii) the IRS would automatically approve a timely application for an automatic 30-day extension of the date for filing with the IRS.
The IRS also indicated that the “good faith effort” standard for correctly completing Forms 1095-C that applied to 2015 and 2016 reporting would not apply to 2017 reporting.
Timing Applicable under the Extension for 2017 Reporting to Employees. The IRS has issued an automatic extension of the date by which Forms 1095-C must be provided to employees. The extended deadline is March 2, 2018. The deadline for filing Forms 1094-C and 1095-C with the IRS remains unchanged. This extension applies only to the reporting for 2017 due in 2018, and will not apply to any future years.
Under these rules, the deadlines for 2018 are:
| Form Recipients | Original Date | Updated Date |
| Employees | January 31, 2018 | March 2, 2018 |
| IRS – Paper Copy | February 28, 2018 | February 28, 2018 |
| IRS – Electronic Copy | April 2, 2018 | April 2, 2018 |
No Additional Extensions for Providing Forms 1095-C to Employees. The IRS has stated that, because it is providing the extension for distributing 2017 Forms 1095-C to employees in early 2018, additional extensions will not be permitted for employee reporting. However, employers may still obtain an automatic 30-day extension for filing their 2017 reporting with the IRS.
“Good Faith Effort” Standard Continued for 2017. The IRS also announced that the “good faith effort” standard that applied to 2015 and 2016 reporting, which provided that ALEMs will not be subject to penalties for incorrectly completed forms as long as the ALEM makes a “good faith effort” to comply with its reporting requirements, will apply to 2017 reporting. This relief applies only to the reporting for 2017 due in 2018, and will not apply to any future years.
Impact. This extension may provide employers with the time they need to complete the forms for 2017 and help ensure their accuracy. In addition, the extension of the “good faith effort” standard will decrease the chances of an employer being subject to penalties for incorrectly completing its 2017 reporting. However, as the IRS announced for 2015 and 2016 Forms 1095-C, we expect the IRS to provide with respect to the 2017 Forms 1095-C that “good faith effort” requires that an employer correct any errors it finds in forms after they have been distributed and/or filed.
Contact Information. For more information from Mazursky Constantine, please contact Don Mazursky (404.888.8840), Kelly Meyers (404.888.8838), Angela Roberts (404.888.8822), or Alex Smith (404.888.8839).