It’s the Holiday Season: IRS Provides Relief for Deadline of Filing ACA Forms

It must be the holiday season. The IRS recently finalized new regulations permanently providing that ALEs must furnish Forms 1095-C to employees no later than 30 days after January 31st of each year (unless the 30 days falls on a Saturday, Sunday, or federal holiday–then they’re due on the next business day following 30 days). In the past, forms were due by January 31st unless an employer asked for an extension. The extension is now automatic.  Applicable Large Employers (ALEs) must file the Form 1094-C, as well as copies of the Form 1095-C’s provided to employees with the IRS no later than March 31st of each year, if filing electronically.  If filing by paper, which is permitted only for employers who must file fewer than 250 returns, ALEs must file no later than February 28th/29th of each year. More on that electronic vs. paper filing below.

That means that for the 2022 filings due in 2023, 1095-C forms must be provided to employees by no later than March 2, 2023 (30 days after January 31, 2023). And yes, that also means that if the ALE is filing under 250 returns on paper, they’re due to the IRS three days earlier, on February 28th. Anyone have a DeLorean? So basically an ALE really only has until February 28th/29th in any given year in which to prepare the 1095-C’s.

About that electronic filing requirement: in 2021, the IRS issued proposed regulations dropping the number of returns that would require electronic filing rather than paper filing to 10 (from 250) . This would have a dramatic impact on smaller employers that were ALEs. However, because the regulation is only proposed at this point, that requirement to only file electronically if an employer had 10 or more returns is not yet in effect.