In Notice 2019-63[1] the IRS has granted an extension of time until March 2, 2020 for employers and insurers to furnish 2019 Forms 1095-B and 1095-C to employees and insured individuals.

The IRS provided the following reason for the extension of time, which is similar to the extensions granted in each of the prior four years:

The Department of the Treasury (Treasury Department) and the Service have determined that a substantial number of employers, insurers, and other providers of minimum essential coverage need additional time beyond the January 31, 2020, due date to gather and analyze the information and prepare the 2019 Forms 1095-B and 1095-C to be furnished to individuals.[2]

Although the regulations allow for issuers to request the IRS grant an extension of time to provide these documents, this broad grant of an extension of time means such additional requests will not be processed:

In view of this automatic extension to March 2, 2020, the provisions under §§ 1.6055-1(g)(4)(i)(B)(1) and 301.6056-1(g)(1)(ii)(A) allowing the Service to grant an extension of time of up to 30 days to furnish Forms 1095-B and 1095-C will not apply to the extended due date. Because the extension of the due date to furnish information statements to individuals granted in this notice applies automatically and is as generous as the permissive 30-day extension of time to furnish 2019 information statements under sections 6055 and 6056 that may be requested by some reporting entities in submissions to the Service, the Service will not formally respond to such requests.[3]

The IRS reminds those providing these forms that this extension does not impact the time for filing these documents with the IRS:

This notice does not extend the due date for filing with the Service the 2019 Forms 1094-B, 1095-B, 1094-C, or 1095-C. However, this notice does not affect the provisions regarding an automatic extension of time for filing information returns; the automatic extension remains available under the normal rules for employers and other coverage providers who submit a Form 8809 on or before the due date. See §§ 1.6081- 1 and 1.6081-8. This notice also does not affect the provisions regarding additional extensions of time to file[4]

The Notice also provides that the IRS is considering the impact of the reduction of the individual shared responsibility payment to zero on the filing of Form 1095-B.  The law still requires such a form to be filed, but taxpayers do not generally need this form in order to prepare their individual returns.

The Notice provides that the penalty for failing to furnish the Form 1095-B to an insured party will be waived for 2019 if two conditions are met:

• The reporting entity posts a notice prominently on its website stating that responsible individuals may receive a copy of their 2019 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity with any questions; and

• The reporting entity furnishes a 2019 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received[5]

The IRS refers to this program as “2019 section 6055 furnishing relief.”[6]

The Notice goes on to warn that this relief does not extend to Forms 1095-C issued for self-insured plans by an employer:

As noted earlier in this notice, ALE members that offer self-insured health plans are generally required to use Form 1095-C, Part III to meet the section 6055 reporting requirements, instead of Form 1095-B. However, because of the combined reporting under sections 6056 and 6055 on the Form 1095-C for full-time employees of ALE members enrolled in self-insured health plans, the 2019 section 6055 furnishing relief does not extend to the requirement to furnish Forms 1095-C to full-time employees. Accordingly, for full-time employees enrolled in self-insured health plans, penalties will continue to be assessed consistent with prior enforcement policies for any failure by ALE members to furnish Form 1095-C, including Part III, according to the applicable instructions. However, the 2019 section 6055 furnishing relief does extend to penalty assessments in connection with the requirement to furnish the Form 1095-C to any employee enrolled in an ALE member’s self-insured health plan who is not a full-time employee for any month of 2019, subject to the requirements of the 2019 section 6055 furnishing relief.[7]

Finally, the Notice extends the program for the IRS granting good faith relief for certain errors:

This notice also extends relief from penalties under sections 6721 and 6722 to reporting entities that report incorrect or incomplete information on the return or statement when these entities can show that they made good-faith efforts to comply with the information-reporting requirements under sections 6055 and 6056 for 2019 (both for furnishing to individuals and for filing with the Service). This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement. Reporting entities must make a good-faith effort to comply with the regulations under sections 6055 and 6056 to be eligible for this relief. In determining good faith, the Service will take into account whether an employer or other coverage provider made reasonable efforts to prepare for reporting the required information to the Service and furnishing it to employees and covered individuals, such as gathering and transmitting the necessary data to an agent to prepare the data for submission to the Service or testing its ability to transmit information to the Service. Reporting entities that fail to file an information return or furnish a statement by the extended due dates, except as otherwise provided in this notice, are not eligible for relief.[8]

[1] Notice 2019-63, December 2, 2019, https://www.irs.gov/pub/irs-drop/n-19-63.pdf retrieved December 2, 2019

[2] Notice 2019-63, p. 6

[3] Notice 2019-63, p. 6

[4] Notice 2019-63, pp. 6-7

[5] Notice 2019-63, pp. 7-8

[6] Notice 2019-63, pp. 7-8

[7] Notice 2019-63, pp. 8-9

[8] Notice 2019-63, pp. 9-10