IRS Releases Draft 2018 Forms 1094 and 1095 and Related Instructions

The IRS has released draft Forms 1094/1095-B (B Forms) and Forms 1094/1095-C (C Forms), and related instructions, for the 2018 tax year. As a reminder, the B Forms are filed by minimum essential coverage providers (mostly insurers and government-sponsored programs, but also some self-insuring employers and others) to report coverage information in accordance with Code § 6055. The C Forms are filed by applicable large employers (ALEs) to comply with Code § 6056, providing information that the IRS needs to administer employer shared responsibility under Code § 4980H, as well as receipt of premium tax credits. (In addition to being filed with the IRS, Forms 1095-B and 1095-C are furnished to individuals.) ALEs with self-insured health plans also report coverage information on Form 1095-C.

The forms and instructions are largely unchanged from 2017. The Plan Start Month box will continue to be optional on Form 1095-C for 2018. Part III of Form 1095-C now includes separate fields for each covered individual’s first name, middle initial, and last name, rather than a single blank for the individual’s full name. (This change is reflected in the C Forms’ instructions; a similar change is made to Part IV of Form 1095-B.) Penalty amounts for reporting failures reflect indexed increases. Both sets of draft instructions continue to explain that the 250-return threshold that triggers mandatory electronic filing with the IRS applies separately for each type of form and for original and corrected returns. According to an example, an entity filing 500 Forms 1095-B and 100 Forms 1095-C would have to file the Forms 1095-B electronically but could file the Forms 1095-C on paper.

EBIA Comment: Those responsible for preparing and filing these forms will undoubtedly welcome the absence of major changes for the 2018 tax year. In particular, it appears that proposed regulations that would substantially increase the number of entities subject to mandatory electronic filing (see our Checkpoint article) are not expected to apply to these filings. With deadlines for furnishing forms to individuals and for filing with the IRS arising quickly after the end of the year and no indication—so far—of reporting relief, it is essential to have a strategy for collecting and organizing the required information. For more information, see 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 upcoming webinar “1094/1095 Reporting for 2018” (live on 11/15/2018).

Contributing Editors: EBIA Staff.