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Regulations related to the Affordable Care Act (ACA) are still being finalized. On December 12, 2022, the U.S. Department of Treasury, along with the Internal Revenue Service (IRS), issued final regulations making permanent the 30-day extension for furnishing Forms 1095-B and 1095-C to individuals. 

Forms 1094-C and 1095-C are used by applicable large employers (ALEs) to report offers of coverage and employee enrollment in health coverage to the IRS. Form 1095-C must go to each employee reported to the IRS.

Highlights from the final regulations include the following:

• 30-day automatic extension of time to furnish Form 1095-C to individuals (not to exceed 30 days after January 31). The new deadline for providing these forms will be March 2.

• An alternative method of furnishing Forms 1095-C (for ALEs) and 1095-B (for insurers and small employers) to individuals if the requirements below are met. Forms 1095-C that are prepared on behalf of part-time employees and non-employees enrolled in an ALE’s self-funded group health plan, such as former employees enrolled in the self-funded group health plan under COBRA or retiree coverage, are not required to be furnished to these individuals if the ALE complies with the requirements listed below:

  • The entity posts a “clear and conspicuous notice” on the entity’s website by March 2 stating that individuals may receive a copy of their Form 1095-B or 1095-C upon request.

  • The notice must contain an email and a physical address that individuals can use to request their Form 1095-B or 1095-C and a telephone number that individuals can use to contact the entity with questions.

  • The entity must also retain the notice on its website until October 15 of the year following the calendar year to which the form relates.

  • The entity furnishes Form 1095-B or 1095-C to any responsible individual within 30 days of the date that the entity receives the request.

The final regulations apply to calendar years beginning after December 31, 2022. Although we did not see a drastic deviation from the proposed rules issued in 2021, it is still imperative to file your reports in a timely manner within these guidelines. Penalties imposed by the IRS can be substantial if information reported is inaccurate. The final regulations confirmed that good-faith reporting relief is no longer available. Please contact the Employers Council Member Experience Team with questions.