IRS Releases Draft Forms for Reporting of Employee Health Coverage under ACA

The Internal Revenue Service has released draft forms that employers will use to report the health coverage they offer their employees.  The draft forms are being provided to help employers, tax professionals and software providers prepare for the new reporting provisions, according to the IRS announcement.  IRS anticipates that draft instructions for the Forms will be posted on later in August.  Plans and employers must comply for coverage provided on or after January 1, 2015.  The first information returns must be filed in 2016.  The draft forms are as follows.

Draft Form 1095-B - Information Reporting of Minimum Essential Coverage (IRC § 6055) - All employers (not just applicable large employers) and health insurance issuers that provide minimum essential coverage must report information about the type and period of health coverage to IRS as well as to covered individuals.  IRS will use the information to verify the months (if any) in which individuals were covered by minimum essential coverage.  This information will assist the IRS in enforcing the individual mandate.

Draft Form 1095-C - Employer-Provided Health Insurance Offer and Coverage (Information Reporting by Applicable Large Employers (IRC § 6056) - Applicable large employers must file a return with the IRS and furnish a statement to full-time employees about the health care coverage the employer offered to that employee (or, that the employer did not offer).  This reporting will assist with the administration of the employer shared responsibility provisions, as well as the administration of the premium tax credit.

Draft Form 1094-B - Transmittal of Health Coverage Information Returns
Draft Form 1094-C - Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns