This blog was last updated on June 27, 2021
A little more than a month after the IRS released draft versions of tax information reporting forms under the Affordable Care Act (ACA), the agency has published draft instructions for the forms. When the forms were released, several industry groups awaited the arrival of the accompanying instructions so they could better understand their reporting obligations, The Hill reported.
The instructions were released Aug. 28 and provide details for ACA tax information related to the employer mandate. These documents include instructions for the following forms: Form 1095-A, Form 1094-B, Transmittal of Health Coverage Information Returns; Form 1095-B, Health Coverage; Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns; and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage.
In a statement issued Aug. 28, Neil Trautwein, vice president at the National Retail Federation, said the employer community and retail industry are happy to have the instructions. With the additional guidance, companies can move forward with their ACA tax compliance strategies.
What the forms reveal
The IRS paired instructions for each form with its accompanying transmittal. Instructions for Forms 1094-B and 1095-B, for example, are in the same document. These details can be viewed on the IRS website.
All of the of instructions include guidance regarding who must file and when.
Reporting is to be completed the year following the calendar year of coverage. Forms 1094-B and 1095-B are to be filed by health care providers, and Forms 1094-C and 1095-C are to be filed by employers, including self-insured employers.
“An employer subject to the employer shared responsibility provisions under section 4980H must file one or more Forms 1094-C (including an Authoritative Transmittal, whether or not filing multiple Forms 1094-C), and must file a Form 1095-C (or a substitute form) for each employee who was a full-time employee of the employer for any month of the calendar year,” the IRS said.
Check out our education section for more about ACA reporting requirements for large employers and insurers.
