IRS next to stoplight The Internal Revenue Service (IRS) has released Notice 2018-94, extending the deadline for furnishing 2018 Forms 1095-B and 1095-C to individuals from January 31, 2019 to March 4, 2019, as well as penalty relief for good-faith reporting errors. 

This extension allows for an additional 30 days for both employers and health insurance providers to provide the Form 1095-B and 1095-C to employees and individuals enrolled in coverage. The extensions of due dates apply only to Forms 1095-B and 1095-C for calendar year 2018 furnished in 2019.

Extension of Good-Faith Relief
The IRS will not impose penalties on employers that can show that they made good-faith efforts to comply with the requirements for calendar year 2018.  In determining good faith, the IRS will consider whether or not employers have made reasonable attempts to comply with the requirements (e.g., gathering and transmitting the necessary data to an agent or testing its ability to transmit information) and the steps that have been taken to prepare for next year’s reporting. 

Note that the relief applies only to furnishing and filing incorrect or incomplete information, and not a failure to timely furnish or file.  However, if an employer is late filing a return, it may be possible to obtain penalty abatement for failures that are due to reasonable cause and not willful neglect.  In general, to establish reasonable cause, the employer must demonstrate that it acted in a responsible manner and that the failure was due to significant mitigating factors or events beyond its control.