The IRS recently released the final Forms 1094-B/C and 1095-B/C and the drafts of general instructions for Forms 1094-B/C and 1095-B/C for the 2022 reporting year.
2022 Forms
Forms 1094-C and 1095-C are filed by applicable large employers (ALEs) to provide information that the IRS needs to administer the employer mandate penalties and eligibility for premium tax credits, as required by the ACA under Section 6056. Forms 1094-B and 1095-B are filed by minimum essential coverage providers (e.g., insurers and self-insuring employers) to report coverage information in accordance with Section 6055. Overall, most of the formats and rules remain the same as those in the previous year. No new codes or lines were added, so the forms should be very familiar to ALEs with reporting obligations in prior years.
2022 Draft Instructions
Based on the draft instructions, employers may continue to rely on the proposed automatic extension to distribute Forms 1095-B and 1095-C to individuals. The proposed rule permanently extends the deadline to furnish the forms to 30 days after January 31, rather than the IRS extending the deadline each year. For reporting year 2022, the deadline to furnish Forms 1095-B and 1095-C to individuals is March 2, 2023.
The good faith penalty relief for incorrect or incomplete information was eliminated permanently with the 2021 reporting year. Therefore, employers should focus on accuracy and thoroughly completing the forms. The penalty for failure to provide a correct form or statement in 2022 is set to increase by $10 to $290 per form/statement in the draft instructions.
Finally, the draft instructions retain the same electronic filing threshold at 250 forms even though the IRS previously released a proposal to significantly reduce the filing threshold, requiring more ALEs to file electronically.
Keep in mind that although the forms were finalized, the instructions are still in the draft stage. Additional changes are possible, and we will keep you updated when the 2022 instructions are released.
2022 Draft Instructions for Forms 1094-C and 1095-C » 2022 Draft Instructions for Forms 1094-B and 1095-B » 2022 Form 1094-C » 2022 Form 1095-C » 2022 Form 1094-B » 2022 Form 1095-B »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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