The IRS recently released the 2019 draft versions of the Forms 1095-B and 1095-C. As background, the ACA imposes two reporting requirements under Sections 6055 and 6056. Section 6055 requires entities to report on Forms 1094-B and 1095-B that they provided minimum essential coverage to covered individuals during the year. Section 6056 requires applicable large employers (under the employer mandate) to report on Forms 1094-C and 1095-C that they provided affordable and minimum value coverage to full-time employees.
On December 4, 2019, the IRS released the 2019 draft of Form 1095-C. On December 5, 2019, the IRS released the 2019 draft of Form 1095-B. The forms are basically unchanged from their 2018 versions, with the exception being that the Form 1095-B reflects the fact that the individual mandate penalty has been zeroed out.
The forms must be filed with the IRS by February 28, 2020, if filing by paper and March 31, 2020, if filing electronically. The Forms 1095-B and 1095-C must be distributed to applicable employees by March 2, 2020. The penalties for failure to file and report are $270 per failure. This means that an employer who fails both to file a completed form with the IRS and to distribute a form to an employee/individual would be at risk for a $540 penalty. Keep in mind, though, that the IRS has provided relief that would allow reporting entities not to distribute the Form 1095-B if certain conditions are met.
We’ll keep you updated of any developments, including release of the finalized forms and instructions.
Draft Form 1095-B »
Draft Form 1095-C »