The IRS recently issued proposed regulations to implement the information reporting requirements for insurers and certain employers under the Patient Protection and Affordable Care Act (Affordable Care Act). 

The Affordable Care Act provides for information reporting under new Section 6055 by insurers, self-insuring employers and other parties that provide health coverage. It also provides for information reporting under new Section 6056 by employers that are large enough to be subject to the employer shared responsibility provisions regarding the health coverage they offer their full-time employees. These reporting requirements were originally scheduled to be effective in 2014, but the IRS delayed the effective date until 2015. For more information, see Tax Flash 2013-10.

The proposed regulations under Section 6056 (REG-136630-12) would require all large employers to report:

  • the employer's name, address, employer identification number and contact phone number;
  • whether the employer offers coverage to its full-time employees (and dependents) under an employer plan, by calendar month;
  • the number of full-time employees for each month during the year;
  • the name, address and Social Security number of each full-time employee during the calendar year and months during which the employee was covered under the plan;
  • the months during the calendar year that coverage was available;
  • the monthly premium for the lowest cost coverage option;
  • whether the coverage meets the minimum value standard;
  • whether the employee's spouse was offered coverage;
  • the total number of employees by month;
  • whether a waiting period to obtain coverage applies;
  • whether the employer is part of an affiliated group and certain information about the members of that group; and
  • whether the employee is eligible to participate in a multiemployer plan and information about the multiemployer plan.

The proposed regulations under Section 6056 provide that this information must be reported to the IRS on Form 1095-C for each individual employee, along with a single Form 1094-C, which acts as a transmittal form. Neither form has been designed yet. Employers must report similar information to the employee. The proposed regulations provide that employers may provide the Form 1095-C to the employees to meet this requirement. The IRS is considering alternatives to simplify this reporting requirement, including the use of Form W-2. The first due date for IRS reporting is Feb. 28, 2015, and the first due date for reporting to the employee is Jan. 31, 2015.

The proposed regulations under Section 6055 (REG-132455-11) require the insurer (which includes employers with self-insured plans) to report certain information to the IRS and to employees. This information is similar to the information required to be reported under Section 6056, as described above. The IRS anticipates that Form 1095-B will be used for this reporting requirement, but it is also considering possibilities that would allow aggregate reporting under both information reporting regimes.   

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