On December 28th, 2015, the IRS issued Notice 2016-4 to delay the due dates for filing and furnishing forms under Section 6055 and 6056.

• The due date for furnishing forms to individuals has been extended from February 1st, 2016 to March 31st, 2016.
• The due date for filing forms with the IRS has been extended from February 29th, 2016 to May 31st, 2016 (or, from March 31st, 2016 to June 30th, 2016 if filing electronically).

These extended due dates are automatic. Filers are not required to submit any requests or other documentation to the IRS to take advantage of the extended due dates provided by Notice 2016-4.

Because these extensions apply automatically to all filers and are more generous than extensions for 2015 returns and statements that have already been requested by some filers, those requests will not be formally granted.

The previous provisions regarding extensions of time for filing information returns and furnishing statements will not apply to the extended due dates.

These extensions for the Sections 6055 and 6056 information reporting provisions for calendar year 2015 have no effect on the information reporting provisions for other years or on the effective date or application of other Affordable Care Act provisions.

Keep in mind that there are stiff penalties for failing to report. The Internal Revenue Service stated that it will not impose penalties on reporting entities that can show that they have made “good faith efforts” to comply with the information reporting requirements. This relief applies only to furnishing and filing incorrect or incomplete information, not a failure to furnish or file a statement or return in a timely fashion. However, the penalties may be waived if a failure to timely furnish or file a statement or return is due to a “reasonable cause”.

For example, penalties would not be imposed if the reporting entity can demonstrate that it acted in a responsible manner and the failure was due to significant mitigating factors or events beyond the reporting entity’s control. However, penalties would apply if a reporting entity intentionally disregarded the filing. In this situation, the fine for failing to report is a hefty $500 per form. For example, a reporting entity who was required to file three hundred 1095 forms would be facing a total fine of $150,000 if they did not file the required forms.

If you would like more information or to receive a quote on our ACA tracking, reporting and e-filing services, please contact us at 716-675-2100 extension 22.