Alert / Employee Benefits
IRS offers Form 1095-C delay, good faith relief for 2017

IRS's holiday gift to employers: Another short delay for supplying 1095-Cs to employees, good faith applies for 2017 filings

Continuing its penchant for issuing important announcements hours before a holiday, the IRS announced this afternoon a brief reprieve for employers hustling to prepare and distribute 2017 Form 1095-C to employees by Jan. 31, 2018. The IRS will give employers until March 2 to distribute the forms to employees (the delay also applies to insurers and others issuing Form 1095-B to covered individuals).

The delay is automatic and does not depend on the employer or insurer asking for an extension. As a result of this automatic 30-day extension, the 30-day extension that would normally be available upon a showing  of good cause is not available. That is, the March 2 deadline is now a hard deadline.

There is no delay, however, in the deadline to file the forms with the IRS. Forms are due to the IRS by Feb. 28, 2018, for employers filing on paper, and by April 2, 2018, for employers e-filing their forms. Employers filing at least 250 Forms 1095-C with the IRS must do so electronically unless they obtain a waiver from the IRS. Employers may obtain an automatic 30-day extension from the deadlines for filing with the IRS by submitting Form 8809 on or before those deadlines.

In addition, the IRS said it will continue to apply to 2017 filings the same "good faith" approach to employer ACA filings that applied to filings for the 2015 and 2016 calendar years. This relief applies only to incorrect and incomplete information reported on Form 1095-C or 1095-B, and not to a failure to timely furnish or file the forms.

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