The Internal Revenue Service (IRS) has released Notice 2019-63 (the Notice). The Notice:
- Extends the Date for Providing Statements to Individuals: The due dates for 2019 information reporting requirements for insurers, self-insuring employers, and certain other providers of minimum essential coverage under Internal Revenue Code (Code) section 6055 and for applicable large employers under Code section 6056 for furnishing to individuals the 2019 Form 1095-B, Health Coverage, and the 2019 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, is March 2, 2020, instead of Jan. 31, 2020.
- The Notice does not extend the due date for filing with the IRS the 2019 Forms 1094-B, 1095-B, 1094-C, or 1095-C. However, the Notice does not affect the provisions regarding an automatic extension of time for filing information returns; the 30-day automatic extension remains available under the normal rules for employers and other coverage providers who submit a Form 8809 on or before the due date. See Reg. §§ 1.6081-1 and 1.6081-8. The Notice also does not affect the provisions regarding additional extensions of time to file.
- Provides Penalty Relief for Not Providing Statements to Individuals: The IRS will not impose a penalty under Code section 6722 against reporting entities for failing to furnish a Form 1095-B to responsible individuals if two conditions are met:
- The reporting entity posts a notice prominently on its website stating that responsible individuals may receive a copy of their 2019 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity with any questions; and
- The reporting entity furnishes a 2019 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received.
This relief does not extend to the requirement to furnish Forms 1095-C to full-time employees. For full-time employees enrolled in self-insured health plans, penalties will continue to be assessed consistent with prior enforcement policies for any failure by ALE members to furnish Form 1095-C, including Part III, according to the applicable instructions. The relief does extend to penalty assessments in connection with the requirement to furnish the Form 1095-C to any employee enrolled in an ALE member’s self-insured health plan who is not a full-time employee for any month of 2019.
Further, this relief does not affect assessment of penalties associated with the requirement or the deadline to file with the IRS the 2019 Forms 1094-B or 1095-B or the Forms 1094-C or 1095-C, as applicable.
- Extends Good Faith Relief: Extends transitional good-faith relief from Code sections 6721 and 6722 penalties to the 2019 information reporting requirements under Code sections 6055 and 6056. Reporting entities that report incorrect or incomplete information on the return or statement may avoid penalties when they can show that they made good-faith efforts to comply with the information-reporting requirements under Code sections 6055 and 6056 for 2019 (both for furnishing to individuals and for filing with the IRS).