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Rule Proposed to Extend ACA Reporting Furnishing Deadlines

The IRS recently released a proposed rule to extend the annual furnishing deadlines for Sections 6055 and 6056 reporting under the Affordable Care Act (ACA).  The new rule would extend the due date for furnishing statements to individuals under Sections 6055 and 6056 by 30 days from January 31 each year. It would also provide additional penalty relief related to furnishing statements to individuals under Section 6055 for each year where the individual mandate penalty is zero. Employers would have to Provide Form 1095-B to covered individuals when requested.

It’s important to note that under the proposed rule, the due date for filing forms with the IRS under Sections 6055 and 6056 has not changed. Forms should be filed with the IRS by February 28 of the year following the calendar year to which the statement relates. If you are filing electronically, the due date is March 31.

Additionally, the proposed rule states that minimum essential coverage (MEC) does not include Medicaid coverage that is limited to COVID-19 testing and services provided under the Families First Coronavirus Response Act (FFCRA).

Next Steps

As it is a proposed rule, it has not been finalized yet. As such, the January 31st general furnishing deadline stands. If the rule is finalized, reporting entities are strongly encouraged to furnish statements to individuals as soon as they can.  Please note this subject matter is evolving and the information reported here is subject to change.

For additional information on the proposed rule, click here.

If you have any questions or concerns, please reach out to your dedicated Creative Benefits, Inc. team member or email solutions@creativebenefitsinc.com.