On December 12, 2022, the Internal Revenue Service (“IRS”) released final regulations with respect the ACA reporting requirements. These rules are substantially similar to the proposed rule issues in November last year.

The final rule:

  • Eliminates the good faith relief from reporting penalties associated with incorrect or incomplete reporting.
  • Makes permanent an automatic extension of 30 days to furnish IRS Forms 1095-C and (1095-B) to individuals. Effectively, this moves the due date for furnishing these forms to full-time employees and other individuals from January 31-March 2 each year (or the next business day if March 2nd falls on a weekend or holiday).
  • Creates an alternative method for furnishing individuals with IRS Form 1095-B as proof of minimum essential coverage (MEC).

Applicable large employers (“ALEs”) have until March 2, 2023 (rather than January 31, 2023) to furnish Forms 1095-C for calendar year 2022 to full-time employees and other individuals.

The final rule does not extend the deadline to file completed Forms 1094-C and 1095-C (and Forms 1094-B and 1095-B) with the IRS. The due date remains March 31, 2023 (or February 28, 2023 for paper filing if filing fewer than 250 forms).

On December 15, 2022, the final instructions for 2022 Forms 1094-C and 1095-C (and Forms 1094-B and 1095-B) were issued without substantive change from the prior year.

Have any questions regarding this notice? Please contact your Total Benefit Solutions health insurance specialists today at (215)355-2121.