On October 2nd, the IRS issued notice 2020-76, which extends the deadline for employers and other coverage providers to distribute forms 1095-B and 1095-C to individuals for the 2020 reporting year. The due date for furnishing the 2020 Form 1095-B and the 2020 Form 1095-C to applicable individuals is extended from January 31, 2021 to March 2, 2021. Although it is extending the due dates, the IRS encouraged employers to furnish the information statements as soon as possible.
The due date for filing with the IRS 2020 Forms 1094-B, 1095-B, 1094-C, or 1095-C remains unchanged, these dates are March 1, 2021 if filing paper or March 31, 2021 if filing electronically.
Also Notice 2020-76, extends the “Good-Faith Relief” from penalties for reporting incorrect or incomplete information when the reporting entity can show that they made a good faith effort to comply with the reporting requirements. No penalty relief is available to entities that do not make a good faith effort to comply with the regulations or that fail to file the information returns by the due dates as extended. The 2020 reporting year will be the last year that this type of relief will be available. Notice 2020-76 plainly states, “As this good-faith relief was intended to be transitional relief, this is the last year the Treasury Department and the IRS intend to provide this relief.”
Clients that need assistance with completing and filing the required forms please contact your Diversified Group Sales Representative to learn about our reporting solutions at (888) 322-2524!