While the Affordable Care Act (ACA) is set for a Supreme Court challenge on Nov. 10, 2020, the IRS has extended the ACA deadline to distribute Form 1095s to employees from Jan. 31, 2021 to March 2, 2021.
The IRS said the 30-day extension was allowed due to a “substantial number of employers” needing additional time, according to Notice 2020-76.
Federal, state mandates
Any firm with 50 or more full-time workers must follow the ACA’s Employer Mandate and offer “affordable” coverage to 95% of its full-time staff or be subject to penalties. Also, firms in California, New Jersey, Vermont, Rhode Island, Massachusetts and Washington, D.C. have additional ACA reporting obligations.
The IRS may impose penalties of up to $280 per form for failing to provide Form 1095-B or 1095-C (for firms with 50+ employees). A separate $280 per-form penalty may be imposed for failing to file an accurate form with the IRS.
However, the IRS said it wouldn’t impose penalties for incomplete forms for 2020 if an employer can show that it made “good faith efforts” to be compliant.