The Internal Revenue Service (“IRS”) has just released the Final Forms and Instructions for 2019 information reporting by employers and other entities under Internal Revenue Code sections 6055 and 6056. The links to the Final Forms and Instructions are below:
2019 Forms for Applicable Large Employers (Code section 6056):
- 2019 Instructions for Forms 1094-C and 1095-C: https://www.irs.gov/pub/irs-pdf/i109495c.pdf
- 2019 Form 1094-C: https://www.irs.gov/pub/irs-pdf/f1094c.pdf
- 2019 Form 1095-C: https://www.irs.gov/pub/irs-prior/f1095c–2019.pdf
2019 Forms for Employers who Self-Fund (Code section 6055):
- 2019 Instructions for 1094-B and 1095-B: https://www.irs.gov/pub/irs-pdf/i109495b.pdf
- 2019 Form 1094-B: https://www.irs.gov/pub/irs-pdf/f1094b.pdf
- 2019 Form 1095-B: https://www.irs.gov/pub/irs-prior/f1095b–2019.pdf
These instructions and forms reflect only minor changes, such as a few formatting modifications and the reflection of indexed penalty amounts for reporting failures. The instructions also reflect the extension of due dates for furnishing statements from January 31, 2020 to March 2, 2020, as well as the extension of good faith relief for reporting and furnishing as reflected in our most recent Client Alert. Additionally, the IRS will not impose a penalty for failure to furnish Form 1095-C to any employee enrolled in an Applicable Large Employer member’s self-insured health plan who is not a full-time employee for any month of 2019 if certain conditions are met. The IRS will also not impose a penalty for failure to furnish Form 1095-B to individuals if certain conditions are met. See Notice 2019-63 at https://www.irs.gov/pub/irs-drop/n-19-63.pdf.
The increased penalties are now as follows for 2019 tax year returns (and may be waived in certain circumstances):
- The penalty for failure to file a correct information return is $270 for each return for which the failure occurs, with the total penalty for a calendar year not to exceed $3,339,000.
- The penalty for failure to provide a correct payee statement is $270 for each statement for which the failure occurs, with the total penalty for a calendar year not to exceed $3,339,000.
- Special rules apply that increase the per-return and per-statement and total penalties with no maximum limitations if there is intentional disregard of the requirement to file the returns and furnish recipient statements.
Additionally, the instructions for Forms 1094-B and 1095-B state that health insurance issuers and carriers are encouraged (but not required) to report coverage in catastrophic health plans enrolled in through the Marketplace for months in 2019.
The remainder of the provisions remain intact, including the mandatory electronic filing for Forms reaching the 250-return threshold.
If you should have questions regarding employer reporting requirements or other ACA mandates, the Employee Benefits Department at Fraser Trebilcock can assist.
Elizabeth H. Latchana specializes in employee health and welfare benefits. Recognized for her outstanding legal work, in both 2019 and 2015, Beth was selected as “Lawyer of the Year” in Lansing for Employee Benefits (ERISA) Law by Best Lawyers, and in 2017 as one of the Top 30 “Women in the Law” by Michigan Lawyers Weekly. Contact her for more information on this reminder or other matters at 517.377.0826 or firstname.lastname@example.org.