The IRS has released the final Affordable Care Act (ACA) reporting forms (Forms 1094-C and 1095-C) for filing next year to cover tax year 2023. Applicable Large Employers, as defined by the Affordable Care Act, are required to file Forms 1094-C and 1095-C to provide the IRS with information about health care offered to employees.
The instructions for the forms are similar to past years but there have been recent changes to the deadline to furnish forms to employees and to the electronic filing (e-filing) requirements. Employers who fail furnish or file statements by the deadlines may be subject to penalties, which is why preparation is key.
The Deadline to Furnish Form 1095-C to Employees is March 1, 2024
The deadline for employers to furnish Form 1095-C to employees is March 1, 2024. (See 87 Fed. Reg. 76569, December 15, 2022.) Taking into account 2024 is a leap year, the furnishing deadline is 30 days from January 31, which is March 1 in 2024 (and not March 2 like it is for non-leap years).
Be Prepared to E-File Returns
Earlier this year, the Department of the Treasury and the Internal Revenue Service issued final regulations amending the rules for filing IRS returns electronically. The final regulations set a new, lower threshold that requires employers to electronically file Forms 1094-C and 1095-C when they are filing ten (10) or more returns (the threshold used to be 250 returns). The new final regulations combine all types of returns when counting whether the employer meets the 10-return threshold. An employer must count the total number of all types of returns it files in a tax year, which include, but is not limited to, the number of Form 1094-C, Form 1095-C, Form W-2, Form 1099, Form 940, and Form 945. As a result, nearly all public agencies will need to file returns electronically with the IRS. The IRS has increased the penalty for failing to file electronically to $310 per return, not to exceed $3,783,000.
The deadline to e-file Forms 1094-C and 1095-C is April 1, 2024. Employers that would like an automatic 30-day extension to file Forms 1094-C and 1095-C must submit Form 8809 on or before the due date of the returns.