On December 22, 2017, the IRS issued Notice 2018-06, which provides a limited extension of time for employers to provide 2017 Forms 1095-C to individuals. It also extends good-faith transition relief from certain penalties for the 2017 reporting year. The deadline to provide Forms 1094-C and 1095-C to the IRS was not extended.
Q What was Extended?
A 2017 Forms 1095-C statements must be furnished to individuals by March 2, 2018 (rather than January 31,
2018). This extension of time also applies to carriers providing Forms 1095-B to individuals in insured plans.
Q Were the deadlines for reporting to the IRS extended?
A No. The 2017 Form 1094-C and all supporting Forms 1095-C (collectively, “the return”) is due to the IRS by April 2, 2018 if filing electronically (or February 28, 2018 if filing by paper). These deadlines were not extended as part
of the relief announced in Notice 2018-06. Per the Notice, the government determined there was no similar need
for additional time for employers to file these Forms with the IRS. As a reminder, employers that file at least 250 Forms 1095-C must file electronically. The IRS encourages all filers to submit returns electronically.
Q Is there penalty relief?
A Yes. Notice 2018-06 extends transition relief from penalties to reporting entities that have made good-faith efforts
to comply with the information reporting requirements for the 2017 reporting year, both for furnishing the Form
1095-C to individuals and for filing with the IRS. Specifically, this relief applies to missing or inaccurate taxpayer
identification numbers and dates of birth, as well as other information required on the return or statement.
No relief is available if the reporting entity does not make a good-faith effort to comply with the regulations or for
a failure to file a return or furnish a statement by the applicable due dates. This relief does not absolve an employer from correcting an incorrect Form if so instructed by the IRS.
Q What if the submissions are late?
A Employers that do not comply with these due dates are subject to penalties. However, employers should still
furnish and file the forms and the IRS will take such furnishing and filing into consideration when determining
whether to abate penalties.
Q What if employees do not have Forms 1096-C (or Forms 1095-B from the carrier) before they file their tax
A Some taxpayers may not receive their Form 1095-C (or 1095-B from the carrier) by the time they are ready to file
their personal tax return for 2016. Taxpayers do not need to wait until they receive their Form 1095-C (or 1095-B)
to file their annual tax return, and may rely on other information from their employer (or carrier) for purpose of
filing individual taxes. Individuals need not send this information to the IRS when filing their returns but should
keep it with their tax records.
Q Will the IRS offer this relief for 2018 reporting?
A According to the Notice, the IRS does not anticipate extending this transition relief, either with respect to the due
date for furnishing the Form 1095-C to individuals and good-faith relief from certain penalties, to 2018 reporting.