Affordable Care Act (ACA) Reporting

December 11, 2017

Affordable Care Act (ACA) Reporting and the President’s Executive Order of January 20, 2017 – Accelerated Due Dates for 2017 Reporting

With a new administration in Washington and more questions than ever about the future of the ACA, we wanted to help our clients filter through the noise and understand what is  required under the law this year.   Within the article, we've outlined the impact of proposed legislation, 2017 reporting due dates, filing relief and extensions, penalties, and the effect of the President’s executive order.  Should additional questions arise, please don't hesitate to contact MHP.

Affordable Care Act Repeal

Though the recent repeal efforts have not succeeded and under current law, the requirement for ACA reporting remains mostly unchanged. The Senate version of the latest tax bill includes a repeal of the individual mandate. The individual mandate is an excise tax that is currently imposed on individuals that fail to maintain complying health coverage.

 Due Dates for 2017 Reporting

 Applicable Large Employers (ALEs), which are generally entities who had 50 or more full-time and full-time-equivalent employees for the prior year, are required to report the details of their offered health coverage to avoid penalties.  Instructions issued by the IRS indicate that the following due dates will apply.

FORM

2016 Due Date

2017 Due Date

Form 1095-B & 1095-C – To Employees

March 2, 2017*

January 31, 2018

Form 1094 with copies of 1095 to IRS - Paper

February 28, 2017

February 28, 2018

Form 1094 with copies of 1095 to IRS - Electronic

March 31, 2017

April 2, 2018

 *Extension relief provided under IRS Notice 2016-70 on 12/5/2017.

 Filing Relief and Extensions

 The IRS has been lenient with penalties and has regularly extended deadlines for filing; there is no indication that relief will continue for the 2017 tax year.  No extensions are currently available to extend the January 31, 2018 deadline.

 Penalties

 Penalties for filing late or incorrectly are $260 per form.  If the form is provided late but before April 30th, the penalty may be reduced to $50 per form.  However, the IRS may increase the penalty to $530 if the filing is deemed to be willfully negligent.

 President’s Executive Order Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal

 This order directed Federal agencies to exercise authority and discretion permitted to them by law to reduce the potential burden imposed by the ACA.  The order does not change the law and will remain in force until changed by Congress.  Taxpayers remain required to follow the law, including the requirement for minimum essential coverage.

 If you have questions, or for more information, please call Morgan Siegal, CPA at 307.634.2151.