IRS Finally Finalizes 2019 Forms 1094 and 1095 and Related Instructions

The IRS has released final Forms 1094/1095-B (B Forms) and Forms 1094/1095-C (C Forms), and related instructions, for the 2019 tax year. No material changes have been made to the forms, either from prior years or from the drafts released in November (see our Checkpoint article). (The “Instructions for Recipient” included with Form 1095-B and 1095-C have been revised to reflect the reduction of the individual shared responsibility penalty to zero (see our Checkpoint article)). The final instructions for both the B Forms and the C Forms have added a “What’s New” section summarizing the relief announced in IRS Notice 2019-63 (see our Checkpoint article) and include other modifications related to that relief. As a reminder, Notice 2019-63 extends, to March 2, 2020, the deadline for furnishing Form 1095-B and Form 1095-C to individual recipients; continues good faith penalty relief for certain reporting failures; and provides relief from penalties for reporting entities that do not automatically furnish Form 1095-B or Form 1095-C to certain individuals, so long as specified conditions are met.

Separately, the Affordable Care Act Information Returns (AIR) Operational Status webpage indicates that electronic filing will begin Wednesday, January 15, 2020.

EBIA Comment: The 2019 forms and instructions were finalized much later than in prior years. Although the reason for the delay is unclear, it may be related to relief from the requirement to automatically furnish Forms 1095-B and 1095-C to certain individuals, which stems from the reduction of the individual shared responsibility penalty to zero. Entities responsible for furnishing Forms 1095-B and 1095-C to individuals should review Notice 2019-63 carefully to determine whether they qualify for the relief. The relief is especially limited for applicable large employers reporting enrollment in their self-insured health plans. Also, some states have enacted, or are considering, individual coverage mandates, with a corresponding requirement to furnish enrollment information to employees and other covered individuals. Employers and other coverage providers in those states should familiarize themselves with state reporting rules. For more information, watch for updates to EBIA’s Form 1094/1095 Workbook at Sections VII (“Form 1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns”) and VIII (“Form 1095-C Report/Employee Statement: Employer-Provided Health Insurance Offer and Coverage”). See also EBIA’s Health Care Reform manual at Sections XXXVI.C (“Information Reporting of Minimum Essential Coverage (Insurers and Employers That Self-Insure)”) and XXXVI.D (“Information Reporting of Employer-Sponsored Coverage (Applicable Large Employers)”). You may also be interested in our webinar “1094/1095 Reporting for 2019” (recorded on 12/4/2019).

Contributing Editors: EBIA Staff.