IRS Gives Large Employers a Last-Minute Christmas Present!

With only a week to spare before year-end, the IRS just issued an extension on the deadline for distributing Form 1095-Cs to employees.

Today’s notice gives employers subject to the employer mandate reporting requirements until March 2, 2018 to send ACA notices to employees. Prior to this extension, it was generally thought that the deadline for distribution would be January 31, 2018, the otherwise applicable deadline for Form W-2 distribution. The extension is surprising because it comes so late in the year. The IRS guidance does not change the deadline of April 2, 2018 for submitting forms to the IRS.

Additionally, the IRS extended its “good faith transition relief” with respect to reporting. Under this relief, employers will not be penalized for filing inaccurate or incomplete forms if they can show they made good-faith efforts to comply with the reporting rules. While this is a welcome reprieve, employers should still be mindful of the need to complete forms as accurately as possible, particularly as the IRS has begun assessing employer mandate penalties. The IRS is currently assessing penalties for the 2015 tax year based entirely on what was reported for those years. Many employers have been surprised to learn that mistakes made on those forms are triggering penalties for taxes they do not owe.

The team at MZQ is always available to help with any questions you may have about the employer mandate and its related reporting requirements. Please feel free to forward questions to your dedicated ACA Specialist or acaquestions@mzqconsulting.com