By - December 7, 2018

ACA Extensions—1095-C Employee Form Deadline and Good Faith Effort

There are often updates when it comes to the Affordable Care Act (ACA). Recently the IRS announced two new extensions that will give employers more flexibility for the 2018 ACA filing year. 

ACA Extention 1: ACA Good Faith Effort extended through the 2018 ACA filing

The IRS recently extended the Good Faith Effort through the 2018 IRS filing. The ACA still requires every Applicable Large Employer (ALE) to follow IRS sections 6055 and 6056—report coverage information about all full-time employees. ALEs must report this information both to the IRS and to their employees. But like in previous years, employers will receive the benefit of the doubt when it comes to the 2018 filing year. This will most likely mean that employers that have some errors but can show they are actively working to correct them may not be penalized at least for the 2018 ACA filing. 

However, we still suggest that employers get used to the ACA regulations and determine their best process to meet its requirements. ACA penalty risks are real especially for IRS Section 4980 related to employees taking government subsidies. The IRS has even started to send Letter 226J for the 2016 reporting year.

ACA Extension 2: ACA deadline extended for providing employees their 1095-C Forms

It’s always good to have a little extra time for ACA, especially around the holidays. The IRS extended the deadline for employers to provide their employees with their 1095-C forms from January 31 to March 4, 2019.

Important: ACA filing deadline has not been extended

But it’s important to note that as of today, the IRS has not extended the ACA filing deadline for 1094-B, 1095-B, 1094-C, or 1095-C forms. This means that employers filing electronically must complete their ACA filing with the IRS by April 1, 2019. Employers with less than 250 forms and filing via paper only have until February 28, 2019 to file.

Stay tuned for more ACA news and updates.

If you’d like to learn more about ACA penalties, check out our website: What You Need to Know About IRS ACA Penalties or learn more about our Tango ACA Compliance & Reporting Solution.

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