On Monday, December 28, 2015, the Internal Revenue Service announced in Notice 2016-4 that employers will have additional time to file annual reports required under the Patient Protection and Affordable Care Act (“ACA”). The ACA requires certain employers to report minimum essential coverage annually on Forms 1094 and 1095. These forms were originally due to employees on February 1, 2016 and employers had until March 31, 2016 to file the forms electronically with the IRS (February 29, 2016 for non-electronic filers). However, Notice 2016-4 extends both of those deadlines for all employers required to file Forms 1094 and 1095.
The new deadlines are as follows:
New Deadline for Forms 1095-B and 1095-C to Individuals: March 31, 2016.
New Deadline for Forms 1094 and 1095 to the IRS: June 30, 2016 for electronic filers and May 31, 2016 for non-electronic filers.
The IRS indicated that it had determined that providers needed “additional time to adapt and implement systems to gather, analyze and report this information.”
Employers should note that the penalties for failure to timely file (and failure to timely furnish) Forms 1095-C were increased earlier this year, from $100 per failure to $250 per failure. There are a number of exceptions and modifications that can reduce the penalties in certain circumstances, and can increase the penalties in other circumstances, but extending the deadlines so that employers have sufficient time to satisfy their obligations is the most effective penalty relief.
- NEW FBAR FILING DUE DATES – New due date is April 15 for returns for taxable years beginning after December 31, 2015. Taxpayers will be allowed a six-month extension to October 15. For any taxpayer required to file an FBAR for the first time, any penalty for failure to timely request or file an extension may be waived by the IRS. Please contact your tax preparer with any questions.
- PARTNERSHIP RETURN DUE DATES – New due date is March 15 (for calendar-year partnerships) and the 15th day of the third month following the close of the fiscal year (for fiscal-year partnerships). Currently, these returns are due on April 15, for calendar-year partnerships. Maximum filing extension of six months for Forms 1065, U.S. Return of Partnership Income. Please contact your tax preparer with any questions.
- C CORPORATION RETURN DUE DATES – New due date is the 15th day of the fourth month following the close of the corporation’s year (April 15 for calendar-year corporations) – these returns are currently due on the 15th day of the third month following the close of the corporation’s year.
C corporations will be allowed an automatic 6-month extension to file, except that calendar-year corporations would get a five-month extension until 2026. Corporations with a June 30 year end would get a seven-month extension until 2026. The new filing due dates will apply to returns for tax years beginning after December 31, 2015. However, for C corporations with fiscal years ending on June 30, the new filing due dates will not apply until tax years beginning after December 31, 2025
EXTENSIONS OF FILING TIME – New extensions for returns for taxable years beginning after December 31, 2015:
- 5 1/2 months ending on September 30 for calendar year taxpayers on Form 1041, U.S. Income Tax Return for Estates and Trusts;
- 3 1/2 months ending on November 15 for calendar year plans on Form 5500, Annual Return/Report of Employee Benefit Plan;
- 6 months ending on November 15 for calendar year filers on Form 990, Return of Organization Exempt From Income Tax;
- an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions) on Form 4720, Return of Certain Excise Taxes
- an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions) Form 5227, Split-Interest Trust Information Return;
- an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions) on Form 6069, Return of Excise Tax on Excess Contributions to Black Lung Benefit Trust
- an automatic 6-month period beginning on the due date for filing the return (without regard to any extensions) on Form 8870, Information Return for Transfers Associated With Certain Personal Benefit Contracts; and
- the due date for Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts, will be April 15 for calendar-year filers, with a maximum six-month extension. The due date of Form
- 3520–A, Annual Information Return of a Foreign Trust with a United States Owner, shall be the 15th day of the third month after the close of the trust’s taxable year, with a maximum six-month extension.
H.R. 3236 also requires tax payers to provide additional information on mortgage information statements and consistent basis reporting between estates and beneficiaries.
If your health insurance plan provides for self-insurance, includes a Health Reimbursement Account, post-retirement benefits, and/or certain Health Flex Savings Accounts you may be subject to an annual excise tax.
Please consult your Health Insurance Professionals for guidance and more information to determine if this excise tax applies to you.
The annual form 720 and required tax are due on July 31.
We can provide assistance with completing and filing of the form 720 to report the excise tax at your request, with information to be provided by your health insurance professionals