Draft Forms for 2017 ACA Reporting Released

September 1, 2017

Quick Facts:

• The Internal Revenue Service (IRS) recently released draft 2017 forms for Affordable Care Act (ACA) reporting.
• The draft forms reflect minor changes.
• Draft instructions for the 2017 forms have not yet been released.
• The IRS expects to release final 2017 forms and instructions by the end of the year.

Overview

The Internal Revenue Service (IRS) recently released 2017 draft forms for reporting under Internal Revenue Code (Code) Sections 6055 and 6056. The draft instructions for the 2017 forms have not yet been released. The IRS expects to release final 2017 forms and instructions by the end of the year – in time for the next Affordable Care Act (ACA) reporting cycle in early 2018.

• Reporting entities, including self-insured health plan sponsors that are not applicable large employers (ALEs), use Forms 1094-B and 1095-B to report information required under Section 6055.
• ALEs use Forms 1094-C and 1095-C to report information required under Section 6056, as well as information required under Section 6055 for ALEs who sponsor self-insured plans. The draft 2017 forms are substantially similar to the final 2016 versions. However, sections related to the expired Code Section 4980H Transition Relief were removed.

Background

The ACA created new reporting requirements under Code Sections 6055 and 6056. Under these rules, certain employers must provide information to the IRS about the health plan coverage they offered or provided (or did not offer or provide) to their employees during the prior calendar year. Every year, each reporting entity must file:

• a separate statement (Form 1095-B or Form 1095-C) for each individual who was provided with minimum essential coverage (for providers reporting under Section 6055), or for each full-time employee (for ALEs reporting under Section 6056); and
• a transmittal form (Form 1094-B or Form 1094-C) for all of the returns filed for a given calendar year with the IRS.

Key changes

The 2017 draft forms are largely unchanged from the 2016 versions. However, employers should take note of the following items.

• Section 4980H Transition Relief. Several forms of transition relief were available to employers under Section 4980H for the 2015 plan year (including any portion of the 2015 plan year that fell in 2016). However, this transition relief no longer applies for plan year 2016 and beyond. As a result, references to transition relief on Form 1094-C have been removed. For example, the “Certifications of Eligibility” Section on Line 22, Box C in Part II and the “ALE Member Information – Monthly” table, column (e) in Part III have been designated as “Reserved” and should not be used.
• Instructions for Recipient. Both individual statements (Forms 1095-B and 1095-C) include an “Instructions for Recipient” section. On both of the 2017 draft Forms 1095-B and 1095-C, this paragraph was added: “Additional information. For additional information about the tax provisions of the Affordable Care Act (ACA), including the individual shared responsibility provisions, the premium tax credit, and the employer shared responsibility provisions, see www.irs.gov/AffordableCare-Act/Individuals-and-Families or call the IRS Healthcare Hotline for ACA questions (1-800-919- 0452).”

No additional changes were included in the 2017 draft forms. However, the 2017 draft instructions for these forms may include additional changes or clarifications. In addition, the IRS may make changes to the draft forms before releasing final 2017 versions.

No changes to reporting requirements

Because legislative efforts to repeal the ACA have not succeeded, ACA reporting and all other related mandates remain intact and are fully applicable for now. Consequently, ALEs employers and self-insured health plan sponsors ALEs must continue to comply with the complete suite of ACA requirements.

Additional resources

The IRS previously released the following materials which provide helpful guidance for employers subject to the reporting rules.

• Q&As on Section 6055 and Q&As on Section 6056  
  (https://www.irs.gov/affordable-care-act/questions-and-answers-on-information-reporting-by-health-coverage-providers-section-6055)
• A separate set of Q&As on Employer Reporting using Form 1094-C and Form 1095-C
  (https://www.irs.gov/affordable-care-act/employers/questions-and-answers-about-information-reporting-by-employers-on-form-1094-and-form-1095-c)

EPIC Employee Benefits Compliance Services For further information on this or any other topics, please contact your EPIC benefits consulting team.
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