The 2019 Forms 1094/1095-B (B Forms) and Forms 1094/1095-C (C Forms) have been released by the Internal Revenue Service (IRS), along with their corresponding instructions. These forms are used to report information to the IRS relating to the Individual Mandate and Employer Share Responsibility provisions under the Affordable Care Act (ACA).
The B Forms are filed and furnished by minimum essential coverage providers, which include insurers, government-sponsored plans, and small, self-insured employers (generally those with less than 50 employees) and the C Forms are filed and furnished by large employers (generally those with 50 or more employees) whether they offer insured plans or self-insured plans. Below are some of the minor changes to the 2019 forms:
- Removal of Individual Mandate Penalty. References to the individual shared responsibility penalty were removed from both sets of instructions. The IRS previously had requested information to determine whether individuals were liable under the penalty. However, the employer shared responsibility penalties remain and adjusted for annual inflation.
- Updated Penalties. Although the failure to report remains at $270 per return, the calendar-year maximum penalties for failure to file or furnish correct information on the forms increased to $3,339,000.
- Updated Due Dates. Statements must be furnished to individuals no later than January 31, 2020. The deadlines to file with the IRS are February 29, 2020, or March 31, 2020, if required to file electronically (250 or more information returns).
Although these forms are drafts and not to be filed and furnished for the 2019 tax year, employers can prepare for these ACA reporting requirements and be on the lookout for the final forms and instructions. For more information on these reporting requirements, check out ComplianceDashboard!
The information and content contained in this blog post are for general informational purposes only, and does not, and is not intended to, constitute legal advice.