October 2, 2020
IRS provides transition relief for health coverage reporting
On October 2, the IRS released Notice 2020-76, which extends the due dates under IRC Sections 6055 and 6056 from January 31, 2021, to March 2, 2021, for insurers, self-insuring employers, applicable large employers and certain other providers of minimum essential coverage, to furnish to individuals the 2020 Form 1095-B, Health Coverage, and the 2020 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
The Notice also provides that the IRS will not impose a penalty under IRC Section 6722 for failures to furnish a Form 1095-B to responsible individuals and provides a final extension of transitional good-faith relief from IRC Section 6721 and 6722 penalties to the 2020 information reporting requirements under IRC Sections 6055 and 6056.
IRC Section 6055 requires health insurance issuers, self-insuring employers, government agencies and other providers to file and furnish annual information returns and statements regarding coverage provided, and IRC Section 6056 imposes a similar requirement on large employers. Form 1095-B, Health Coverage, meets the requirements of the IRC Section 6055 regulations. Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, meets the requirements of the IRC Section 6056 regulations.
The Notice states that Treasury and the IRS have determined that a substantial number of employers, insurers and other providers of minimum essential coverage need additional time beyond the January 31, 2021, due date to gather and analyze the information and prepare the 2020 Forms 1095-B and 1095-C to be furnished to individuals, hence the extension.
A detailed Tax Alert on the Notice is forthcoming.