IRS Releases Draft Instructions for 2019 ACA Reporting Forms

November 26, 2019

On November 13, 2019, the IRS published a draft version of the instructions for 2019 reporting Forms 1094-B and 1095-B, which are used by insurers and small self-insured employers to report that they offered MEC. The IRS also published a draft version of the instructions for 2019 reporting Forms 1094-C and 1095-C, which are used by applicable large employers to comply with Section 6056 reporting under the ACA. These drafts are for informational purposes only but employers should familiarize themselves with the forms in preparation for 2019 plan year filings.

This year’s forms feature a few new changes. They show that while the penalty for the failure to file a correct information return remains $270 for each incorrect return, the penalty cap is raised to a total of $3.339 million for a calendar year, up from a cap of $3,275,500 in 2018. In addition, the updated draft 1095-C form shows that the affordability safe harbor percentage threshold is 9.86% in 2019, up from the 9.56% threshold in 2018.

Although many anticipated that instructions pertaining to the individual mandate would be removed since the mandate was eliminated effective 2019, those instructions remain. They can be found in Section III of the drafts for both Forms 1095-B and 1095-C.

As a reminder, the forms must be filed with the IRS by February 29, 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 January 31, 2020. As noted above, the penalty for failure to comply is $270 per failure. This means that an employer who fails to file a completed form with the IRS and distribute a form to an employee/individual would be at risk for a $540 penalty.

Draft Instructions for Forms 1094-B and 1095-B »
Draft Instructions for Forms 1094-C and 1095-C »