Employer and Health Insurance Coverage Providers Have More Time to Issue Forms
The 2016 round of Forms 1094 and 1095 reporting health insurance coverage have later deadlines than initially expected. Here is a chart recently issued by the IRS to help taxpayers understand the coming due dates.
|
Action |
2017 Reporting Due Dates for… | ||
| Applicable Large Employers – Including Those That Are Self-Insured | Self-insured Employers That Are Not Applicable Large Employers | Coverage Providers – other than Self-Insured Applicable Large Employers* | |
|
Provide 1095-B to responsible individuals
|
Not Applicable** |
Mar. 2 |
Mar. 2 |
| File 1094-B and 1095-B with the IRS | Not Applicable** | Paper: Feb. 28
E-file: Mar. 31* |
Paper: Feb. 28
E-file: Mar. 31* |
| Provide 1095-C to full-time employees | Mar. 2 | Not Applicable | Not Applicable |
| File 1095-C and 1094-C with the IRS | Paper: Feb. 28
E-file: Mar. 31* |
Not Applicable
|
Not Applicable
|
* If you file 250 or more Forms 1095-B or Forms 1095-C, you must electronically file them with the IRS. Electronically filing ACA information returns requires an application process separate from other electronic filing systems. Additional information about electronic filing of ACA Information Returns is on the Affordable Care Act Information Reporting (AIR) Program page on IRS.gov and in Publications 5164 and 5165.
** Applicable large employers that provide employer-sponsored self-insured health coverage to non-employees may use either Forms 1095-B or Form 1095-C to report coverage for those individuals and other family members.
IRS Use of Private Debt Collection Resumes
A 2015 law allows the IRS to utilize private debt collector firms to collect on overdue tax accounts starting in Spring 2017. These collectors are allowed to contact taxpayers by phone, must act courteously, and can identify themselves as IRS contractors. The IRS will notify taxpayers by mail if their account is transferred to these collectors.
This tactic was employed a few years ago, but was abandoned after taxpayer complaints.
Tax Bill Expected To Be Signed Soon
The Bill we’ve all been waiting for has arrived and is on its way to the President for signature. The Bill primarily extends or makes permanent many provisions that were in place the past few years.
One of the most notable provisions is making the increased Section 179 depreciation deduction permanent (at $500,000/year).
Other notable items include permanent provisions for the American Opportunity Tax Credit (for education expenses) and state sales/use tax deductions (a big win for our friends in zero-income-tax states).
The entire summary of the proposed “Protecting Americans from Tax Hikes Act of 2015” from the Ways and Means Committee can be read here.
Decrease In Standard Mileage Rates for 2016
Likely due to the recent decrease in fuel costs, the IRS announced the lower 2016 standard mileage rates for business use of cars, pickups, vans and panel trucks. The 2016 rate falls $.035 to $.54 per mile from the 2015 rate of $.575 per mile.
The 2016 mileage rate for medical and moving deductions is $.19 per mile, down $.04 from 2015’s rate of $.23 per mile.
The IRS Notice announcing these rates can be found here.
2016 Inflation Adjusted Amounts Released
The IRS recently released the inflation adjusted amounts for 2016, including next year’s tax rates, retirement plan contribution limits and phase out ranges.
The tax rates change nominally in 2016 from 2015 and can be found here.
The 2016 retirement plan contribution limits remain unchanged from 2015 and can be found here.
New IRS Resource helps Employers Understand the Health Care Law
The new ACA Information Center for Applicable Large Employers page on IRS.gov features information and resources for employers of all sizes on how the health care law may affect them if they fit the definition of an applicable large employer.
The web page includes the following sections:
- What’s Trending for ALEs,
- How to Determine if You are an ALE,
- Resources for Applicable Large Employers, and
- Outreach Materials.
Visitors to the new page will find links to:
- Detailed information about tax provisions including information reporting requirements for employers,
- Questions and answers, and
- Forms, instructions, publications, health care tax tips, flyers and videos.
Although the vast majority of employers will not be affected, you should determine if you are an applicable large employer. If you averaged at least 50 full-time employees, including full-time equivalent employees, during 2014, you are most likely an ALE for 2015. If you have fewer than 50 full-time employees, you may be considered an applicable large employer if you share a common ownership with other employers. As an applicable large employer, you should be taking steps now to prepare for the coming filing season.
In 2016, applicable large employers must file an annual information return – and provide a statement to each full-time employee – reporting whether they offered health insurance, and if so, what insurance they offered their employees.
If you will file 250 or more information returns for 2015, you must file the returns electronically through the ACA Information Reports system. You should review draft Publication 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns, now for information on the communication procedures, transmission formats, business rules and validation procedures for returns that you must transmit in 2016.
