The IRS issued key extensions to looming 2016 information reporting deadlines for applicable large employers. This relief applies only to the deadlines for reporting the coverage that employers offered in 2015:

  • The deadline for providing employee statements is extended to March 31, 2016 (from February 1, 2016).
  • The deadline for filing 1094-Cs and 1095-Cs with the IRS is extended to May 31, 2016 (June 30, 2016, if filing electronically) (from February 29, 2016 for paper filings and March 31, 2016 for electronic returns).

While the IRS encourages employers to complete reporting as soon as possible, it recognizes that some filers may need more time to do this for the first year of reporting.  Employers will not be able to request an automatic or permissive extension of time beyond these extended deadlines. This means that employers could incur a penalty if unable to provide employee statements by March 31, or to file returns with the IRS by May 31 (June 30, if e-filing). However, employers will still have an opportunity to demonstrate reasonable cause for reduced or waived reporting penalties for incomplete or inaccurate filings.  No penalty relief is available if there is a failure to timely provide an information return or to furnish a statement.

The key to avoiding penalties is to make a good faith effort and provide returns or statements by the applicable deadlines (with extensions), even if incomplete.

These deadline extensions could impact employees who need coverage information to file their income tax returns. For example, an employee enrolled in an individual policy at the Marketplace, with the potential for subsidized coverage, needs the 1095-C to confirm if their employer offered them affordable minimum essential coverage. In light of this, the IRS states that individuals who file their 2015 income tax returns based on information that they received from their employer or coverage provider do not need to file amended returns or take other action upon receipt of their 1095-C (and/or 1095-B).

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Photo of Bethany Bacci Bethany Bacci

Bethany Bacci is a member of Stoel Rives’ Employee Benefits Group and counsels public and private employers on how to stay in compliance with the Internal Revenue Code, ERISA, HIPAA, COBRA, and the other statutory and regulatory regimes; qualified and nonqualified retirement plans…

Bethany Bacci is a member of Stoel Rives’ Employee Benefits Group and counsels public and private employers on how to stay in compliance with the Internal Revenue Code, ERISA, HIPAA, COBRA, and the other statutory and regulatory regimes; qualified and nonqualified retirement plans; health and welfare plans; and executive compensation arrangements. In an ever-changing regulatory environment, Bethany assists clients with staying on top of legal developments and current industry trends, including everything from pension derisking to changes in health care reform. In corporate transactions, she assists clients with identifying potential liability, assessing risks, and analyzing opportunities for synergy. She regularly handles plan spinoffs and mergers. Bethany has been listed in The Best Lawyers in America© in the Employee Benefits (ERISA) Law practice area for 2013 to 2019.

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Photo of Kiran Griffith Kiran Griffith

Kiran Griffith advises clients on employee benefits matters, including plan design and drafting, benefits strategy and innovation, and regulatory compliance. Kiran has extensive experience advising public and private sector employers, associations, and boards of trustees, as well as service providers in the health…

Kiran Griffith advises clients on employee benefits matters, including plan design and drafting, benefits strategy and innovation, and regulatory compliance. Kiran has extensive experience advising public and private sector employers, associations, and boards of trustees, as well as service providers in the health and wellness space. Her practice focuses on the Patient Protection and Affordable Care Act (ACA), health care transparency (including the No Surprises Act), mental health parity, ERISA, HIPAA, COBRA, the Internal Revenue Code, and other federal and state laws that impact employer-sponsored benefit designs and administration.

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