Potential Plans for an Automatic Extension on Form 1095-C Copies
What is the deadline for recipient copies to be distributed for the 2021 tax year?
This has been a major question directed at the IRS since they failed to announce a good faith extension for the ACA recipient copy deadline, as usual, this fall. The IRS has provided ALEs, TPAs, PEOs, and other ACA-mandated filers with this extra grace period since the Affordable Care Act reporting requirements were set in place.
Although it is not likely that there will be additional time to furnish 1095 copies for the 2021 tax year, the IRS has released a new proposal on this topic.
Information Laid Out in the Proposal
The IRS recently released this proposal. This document from the IRS, states that the IRS is proposing an automatic extension of no more than 30 days for ALE members and other organizations that are required to file to furnish copies to their employees and recipients.
More importantly, this extension of 30 days would not apply only to the 2021 tax year, but would become effective permanently. This means that every year businesses that are required to complete ACA reporting would have an additional 30 days to distribute copies of Forms 1095.
Rather than the original January 31st deadline, employers would have until March 2. While this doesn’t actually change the deadline, it essentially gives all organizations that must file some additional wiggle room for completing their Forms 1095.
What Could This Mean for 2021 ACA Reporting?
There is no guarantee that the IRS will finalize this proposal.
However, this extension would allow your business additional time to complete Forms 1095-B and Form 1095-C as needed.
ACA Forms are due to the IRS on February 28, 2022, for those planning to paper file, and March 31, 2022, for those planning to e-file 1095-c.
Even if employers are granted some additional time, businesses should begin planning for their ACA reporting as soon as possible, if they haven’t already.
What is the Takeaway from this Proposal?
While this is potentially good news, until the IRS finalizes the proposal it will not go into effect. This means businesses should continue to treat January 31 as the recipient copy deadline because as of now it still is.
This means beginning your ACA reporting process as soon as possible! Our team is ready to help.
ACA Reporting Solutions From ACAwise
If your organization is required to file and distribute ACA Forms, now is the time to reach out to ACAwise to learn more about the solutions that our team offers.
ACAwise offers solutions catered to your business’s specific needs. Whether you need a solution for e-filing and distributing Forms 1094 and 1095, or a complete solution for generating the codes required for Form 1095-C, we have you covered. Our team is with you through every step of the process. This includes state filing and a wide range of filing scenarios.
To get started today, reach out to our team at [email protected] or give us a call at 704.954.8420.
