IRS Releases 2020 Draft Versions of 6055 and 6056 Informational Reporting Forms
July 21, 2020
The IRS recently released draft versions of the 2020 informational reporting forms that insurers and self-insured employers will use to satisfy their obligations under IRC Section 6055 and that large employer plan sponsors and health plans will use to satisfy their obligations under IRC Section 6056. These forms, once finalized, will be filed in early 2021 relating to 2020 information. (Note that 2020 draft instructions for these forms have not yet been released.)
As background, the ACA imposes two reporting requirements under Sections 6055 and 6056. Section 6055 requires insurers and small self-insured employers 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 July 13, 2020, the IRS released the 2020 draft of Forms 1094-C and 1095-C. Earlier in the month, the IRS released the 2020 draft of Forms 1094-B and 1095-B. While the Forms 1094-B and 1094-C are basically unchanged from their 2019 versions, there are notable changes to Forms 1095-B and 1095-C. Highlights of the changes are as follows:
- 1095-B – Line 8 in Part I offers a new code “G” to account for Individual Coverage Health Reimbursement Arrangements (ICHRAs).
- 1095-C – Part II asks for the employee’s age on January 1.
- 1095-C – Line 16 in Part II offers new codes to account for ICHRAs. Codes 1L through 1S indicate offers of coverage specific to ICHRAs. Additional information on how to apply these codes are expected to be provided in the 2020 instructions, once available.
- 1095-C – Line 17 in Part II requires ZIP code to be provided.
As a reminder, the forms must be filed with the IRS by March 1, 2021 (as February 28, 2020, falls on a Sunday), if filing by paper and March 31, 2021, if filing electronically. The Forms 1095-B and 1095-C must be distributed to applicable employees by February 1, 2021 (as January 31, 2021, falls on a Sunday). 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.
Employers should become familiar with these forms in preparation for filing information returns for the 2020 calendar year. However, these forms are only draft versions, and they should not be filed with the IRS or relied upon for filing. We will keep you updated of any developments, including release of the finalized forms and instructions.
Draft Form 1094-B »
Draft Form 1095-B »
Draft Form 1094-C »
Draft Form 1095-C »