Last Friday, the Internal Revenue Service (IRS) issued Notice 2020-76 to:
- Extend the due date for furnishing 2020 forms under Section 6055 and 6056 from February 1, 2021 to March 2, 2021;
- Provide a final extension of good-faith transition relief from penalties related to 2020 information reporting under Sections 6055 and 6056; and
- Provide additional penalty relief related to furnishing 2020 forms to individuals under Section 6055 — Employers will only have to provide 1095-B to covered individuals upon request.
If filing in paper form, the deadline to file with the IRS for 2020 remains March 1, 2021. If filing electronically, the due date is March 31, 2021.
Impact on Filing Deadline
The IRS determined that there is no need for additional time for employers, insurers, and other providers of minimum essential coverage (MEC) to gather and analyze information. This explains why the notice’s due date for filing forms 1094-B, 1095-B, 1094-C, or 1095-C remains the same.
Extension of Good-Faith Transition Relief from Penalties for 2020
The notice extends transition relief from penalties for proving incorrect or incomplete information to reporting entities that can show that they have made good-faith efforts to comply with Section 6055 and Section 6056 reporting requirements for 2020. However, this is the last year that the IRS intends to provide this transition relief.
The IRS is encouraging reporting entities to furnish 2020 statements as soon as they are able. No request or other documentation is required to take advantage of the extended deadline.
For additional information regarding ACA compliance, click here.
It is our goal to guide you through ongoing change. Don’t hesitate to reach out to Creative Benefits, Inc. with any questions at 866-306-0200 or solutions@creativebenefitsinc.com.