ACA Deadline Extension for TY2016

Today, the IRS announced extended due dates for issuing employee copies for Tax Year 2016.

Notice 2016-70 extends the due date for furnishing the 1095-C forms to the employees from January 31, 2017 to March 2, 2017.  Although the IRS has issued this automatic 30-day extension, they still encourage employers to provide the forms to their employees as soon as they are available.  

What about the filing due dates?

This extension, however, does not affect the filing due dates.  The IRS has stated the paper filing deadline (February 28, 2017) will remain unchanged.   This also includes the electronic filing deadline of March 31, 2017.

Extension of the “Good Faith” Transition Relief

The IRS has also announced they are extending the “good faith” transition relief from penalties for tax year 2016.  This relief applies to employers who furnished to the employee or filed with the IRS, incorrect or incomplete forms. Under this transition relief, the employer may be exempt from penalties as long as they can prove there was a valid effort to comply with the reporting requirements.  This includes efforts to furnish accurate forms to their employees by the due dates. They also must document steps taken to correct any incorrect information.

 

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