December 05, 2019

IRS Issues Definitive Guidance on Forms 1095-B and 1095-C for the 2019 Tax Year

On December 2, the IRS issued Notice 2019-63 concerning transition relief for health insurance coverage reporting required by IRC Sections 6055 and 6056 for the 2019 tax year. The guidance requires health plans (Form 1095-B) and self-funded employers (Form 1095-C) to continue preparing these reports for the 2019 tax year. Because the individual shared responsibility penalty has been set at zero for 2019, the IRS will not penalize health plans for failing to mail the Forms 1095-B to their members as long as the following requirements are met: (1) the health plan posts a prominent notice on its website stating that an individual’s Form 1095-B is available upon request; and (2) if such a request is made, the health plan furnishes the individual’s Form 1095-B within 30 days of receiving the request.

Practitioners should consider how these requirements intersect with the state reporting requirements for the three jurisdictions (District of Columbia, Massachusetts and New Jersey) that impose penalties for failure to comply with their individual health insurance coverage mandates for 2019.