IRS Announces Filing Extension for 2018 Forms 1095-B and 1095-C and Continued Good Faith Transition Relief

Late last week, the IRS announced it was extending the deadline for getting Forms 1095-B and 1095-C to employees from January 31, 2019 to  March 4, 2019. Despite the extension, the IRS encourage employers to furnish the form as as possible.

The extension to provide employees with a copy of Form 1095-B and 1095-C DOES NOT extend the due date for employer, insurers, and other providers to file the 2018 forms with the IRS. The filing due date for these forms remains February 28, 2019 (or April 1, 2019 if filing electronically), unless the IRS announces they will extend the filing due date. 

In Notice 2018-94 released by the IRS, they reveled that while failure to furnish and file the Form timely may subject employers to penalties, they should still attempt to furnish and file even after the applicable due date as the IRS will take this action into consideration when determining if penalties will be assessed. 

Good faith reporting standards will apply once again for 2018 reporting. This means that reporting entities will not be subject to reporting penalties for incorrect or incomplete information if they can show that they have made good faith efforts to comply with the 2018 Form 1094 and 1095 requirements. This relief applies to missing and incorrect taxpayer identification numbers and dates of birth as well as other required return information. No relief is provided, however, where there has not been a good faith effort to comply with the reporting requirements.