The IRS has released draft forms that employers will use to report the health coverage they offer their employees. The IRS says it provided the draft forms to help employers, tax professionals and software providers prepare for these new reporting provisions and to invite comments from them.
The IRS says that it anticipates draft instructions relating to the forms will be posted on its website in August, and said both the forms and instructions will be finalized later this year.
The draft versions of the forms are to be used by employers filing information returns and providing individual statements under Code §§ 6055 and 6056. First filings will be due in early 2016 to report health coverage provided in 2015.
The draft forms are as follows (copies of the draft forms are available at www.IRS.gov/draftforms (you can put the form number in the “find” category to get to the desired form).
Draft Form 1095-B – Information Reporting of Minimum Essential Coverage (IRC § 6055) – All employers (not just applicable large employers) and health insurance issuers that provide minimum essential coverage must report information about the type and period of health coverage to IRS as well as to covered individuals. IRS will use the information to verify the months (if any) in which individuals were covered by minimum essential coverage. This information will assist the IRS in enforcing the individual mandate.
Draft Form 1095-C – Employer-Provided Health Insurance Offer and Coverage (Information Reporting by Applicable Large Employers (IRC § 6056) – Applicable large employers must file a return with the IRS and furnish a statement to full-time employees about the health care coverage the employer offered to that employee (or, that the employer did not offer). This reporting will assist with the administration of the employer shared responsibility provisions, as well as the administration of the premium tax credit.
Draft Form 1094-B – Transmittal of Health Coverage Information Returns.
Draft Form 1094-C – Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns.
Note that the forms that refer to “applicable large employers” (ALEs) – refer to employers with more than 50 full-time employees, including full-time equivalent employees.
If you wish, you can submit comments about draft or final forms, on the “Comment on tax forms and Publications page on IRS.gov.”
We will continue to keep you updated as more information becomes available.