Take Notice: The IRS Proposes ACA Reporting Relief And Deadline Extensions!

On November 22, 2021, the Department of Treasury and the IRS issued proposed regulations generally intended to provide Form 1095-B and 1095-C reporting relief. Under the statutory language of the ACA, reporting entities are supposed to issue the Forms 1095-B and 1095-C, which provide information about the offers of and enrollment in health coverage during the prior year, to individuals by no later than January 31. The challenges related to preparing and distributing these forms on such a short timeframe soon became apparent, so through a series of Notices issued every year since these reporting rules first went into effect, the IRS has extended the deadline to furnish the Forms to individuals and provided good faith relief from reporting penalties. The proposed regulations would make this relief permanent, along with limited relief from the furnishing requirement that the IRS has provided for the last two years. However, the IRS is also proposing eliminating the good