The IRS released final 2021 instructions for reporting under Internal Revenue Code (Code) Sections 6055 and 6056.
- 2021 Instructions for Forms 1094-B and 1095-B, which will be used by providers of minimum essential coverage (MEC), including self-insured plan sponsors that are not applicable large employers (ALEs), to report under Section 6055.
- 2021 Instructions Forms 1094-C and 1095-C, which will be used by ALEs to report under Section 6056, as well as for combined Section 6055 and 6056 reporting by ALEs who sponsor self-insured plans.
The final forms for 2021 reporting were released earlier in 2021. No substantive changes were made to the forms for 2021 reporting.
The final instructions for 2021 were updated to include the extended due date for furnishing statements to individuals.
In late November 2021, a proposed rule extended the due date for furnishing statements to individuals under Sections 6055 and 6056 by 30 days from Jan. 31 each year. As a result, individual statements for 2021 must be furnished by March 2, 2022.
The proposed rule also provides additional penalty relief related to furnishing statements to individuals under Section 6055 for every year in which the individual mandate penalty is zero. Under this relief, employers generally will only have to provide Form 1095-B to covered individuals upon request.
Employer Next Steps:
Review these forms and instructions for reporting for the 2021 calendar year.
Keep in mind that the due date for filing forms with the IRS under Sections 6055 and 6056 remains unchanged. This means that 2021 forms must be filed with the IRS by Feb. 28, 2022 (or March 31, 2022, if filing electronically).
For recent Compliance Check blog posts, visit: https://www.valentgroup.com/category/employee-benefits/compliance-check/
This blog and its contents are not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.