The IRS has released draft versions of the Forms 1094 and 1095 that employers will use to satisfy their ACA reporting obligations for the 2017 tax year.
Background. The ACA amended the Internal Revenue Code to include Sections 6055 and 6066.
Code Section 6055 requires employers that sponsor self-funded health plans (and other entities that provide minimum essential coverage, such as insurance carriers and governmental agencies) to report coverage information by filing an information return with the IRS and furnishing a statement to individuals. The information is used by the IRS to administer (and for individuals to show compliance with) the individual shared responsibility provisions in Code Section 5000A.
Code Section 6056 requires Applicable Large Employers (“ALEs”) to file information returns with the IRS to report whether they offered health coverage to their full-time employees (and their dependents) and, if so, to provide information about the offer of coverage. ALEs must also provide a copy of this information to their employees.
Form 1094/1095 Information Returns. Employers with self-funded health plans use Forms 1094-B and 1095-B to satisfy their obligations under Code Section 6055 to report health plan enrollment.
- A draft version of the 2017 Form 1094-B can be accessed here: https://www.irs.gov/pub/irs-dft/f1094b–dft.pdf
- A draft version of the 2017 Form 1095-B can be accessed here: https://www.irs.gov/pub/irs-dft/f1095b–dft.pdf
The 2017 versions of Forms 1094-B and 1095-B remain unchanged from their 2016 counterparts.
ALEs use Forms 1094-C and 1095-C to satisfy their reporting obligations under Code Section 6056 (concerning information relevant to the ACA’s employer shared responsibility penalty).
- A draft version of the 2017 Form 1094-C can be accessed here: https://www.irs.gov/pub/irs-dft/f1094c–dft.pdf
- A draft version of the 2017 Form 1095-C can be accessed here: https://www.irs.gov/pub/irs-dft/f1095c–dft.pdf
While the 2017 version of 1095-C remains unchanged from the 2016 version, the 2017 version of Form 1094-C removes the line 22 box concerning Section 4980H Transition Relief, which applied only to the 2015 plan year. This item remained on the 2016 version of the form because some non-calendar year plans qualified for the relief during months covered by the 2016 calendar year.
Action Steps for Large Employers. Although efforts to repeal and replace the ACA continue, changes have not yet been made to employers’ reporting requirements thereunder. Accordingly, employers that sponsor self-funded health plans and ALEs should continue to prepare to file Forms 1094 and 1095 for the 2017 tax year.