Final Forms and Instructions for IRS’ 2024 ACA Reporting Available

The IRS has released final forms and instructions for Affordable Care Act (ACA) information reporting for 2024. As a reminder, Forms 1094 -B and 1095-B are filed by minimum essential coverage providers (such as health insurers and employers sponsoring self-insured health plans) to report coverage information in accordance with Code § 6055. Forms 1094-C and 1095-C are filed by applicable large employers (ALEs) to provide information that the IRS needs to administer employer shared responsibility penalties and eligibility for premium tax credits, as required under Code § 6056.

The forms are essentially unchanged from 2023. The B form instructions clarify that information reporting penalties for failure to file correct information returns are lower if applicable to small businesses with average gross receipts of $5 million or less. Additionally, the form instructions now include reference to the fact that the penalty per return increases to $660 with no annual maximum limitation if there is an intentional disregard of the requirements to file the returns and furnish recipient statements. The C form instructions reflect that the affordability safe harbor and qualifying offer method are applied using the percentage as adjusted for 2024, which is 8.39%.

For calendar year 2024, Forms 1094 -B and 1094-C (transmittals with statements) are required to be filed with the IRS by February 28, 2025 (if filing on paper), or March 31, 2025, if filing electronically. (Filers may extend these deadlines by application to the IRS using Form 8809.) The deadline for furnishing statements to the person identified as the “responsible individual” on the form for coverage is March 3, 2025. Filers with ten or more returns in the aggregate must file their Forms 1094-B, 1095-B, 1094-C, and 1095-C electronically. Filers must consider in the aggregate almost all information return types (including these forms, Forms W-2, and 1099) to determine if the ten-return threshold is met. Publications 5165 (guide for electronically filing ACA information returns for software developers and transmitters), 5258 (ACA AIR submission composition and reference guide), and 5308 (guide for automated enrollment for ACA providers), have also been revised.

EBIA Comment: With the issuance of the final forms and instructions—and availability of updated Publications with technical details related to electronic filing—filers should have the tools they need to prepare for filing the 2024 forms. For more information, see EBIA’s Health Care Reform manual at Sections XXVIII (“Shared Responsibility for Employers (Play or Pay Penalty Tax)”), 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)”). Also watch for the upcoming update to EBIA’s Form 1094/1095 Workbook, including Sections VI (“Getting Started: What Information Is Needed to Complete the C Forms”), VII (“Form 1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns”), VIII (“Form 1095-C Report/Employee Statement: Employer-Provided Health Insurance Offer and Coverage”), IX (“Furnishing Employee Statements”), and X (“Filing With the IRS”).

Contributing Editors: EBIA Staff.