On October 2, 2020 the IRS announced that it is extending the ACA deadline again for this year. Employers were originally required to furnish year 2020 form 1095-C and/or 1095-B information returns to employees by January 31, 2021. Following suit from prior years the IRS had automatically extended the deadline to March 2, 2021. This is welcome news to HR and Payroll departments who have been overburdened through 2020 with all of the new legislative changes impacting their employees due to COVID-19. As we have done in the past, CTR will process and ship ACA forms for those clients that still wish to furnish forms to employees in January. CTR will be holding ACA educational webinars in November and December of this year to provide updates on the ACA forms and to provide refresher trainings on how to review and approve your ACA forms. Stay tuned for more information. Please be aware that the IRS did NOT extend the deadline to file form 1094-C and 1095-C with the IRS. As in prior years, CTR must still file your ACA forms with the IRS by March 31, 2021.
Final Year for the Good Faith Rule
In prior years employers that report incomplete or incorrect information on their ACA forms can show they made a good-faith effort to file and furnish. In determining whether the Good-Faith relief applies, the IRS will take into account whether an employer made reasonable efforts to prepare for reporting the information to the IRS. IRS Notice 2020-76 states “As this good faith relief was intended to be transitional relief, this it the last year the Treasury Department and IRS intend to provide this relief.”
If you are unsure of whether this relief applies to your organization, contact CTR to find out what we can do for you.