ACA Reporting Transition Relief

1.5 minute read

The IRS recently issued Notice 2020-76 which makes some changes to 2020 ACA reporting.

• The due date for distributing forms under Sections 6055 and 6056 has been extended from February 1, 2021 to March 2, 2021.
• Good-faith transition relief has been extended to those employers who have provided incorrect or incomplete information but have made good-faith efforts to comply with Sections 6055 and 6056 reporting requirements.
• Additional penalty relief has also been given to those distributing 2020 forms to individuals under Section 6055. Employers will only need to provide Form 1095-B to covered individuals upon request.

The due date for filing forms with the IRS for 2020 is March 1, 2021 (since February 28, 2021 is a Sunday) or March 31, 2021 if you are filing electronically.

The IRS is encouraging employers to furnished 2020 statements as soon as they are able. No request or extra documentation is required to take advantage of the extended deadline. According to the IRS notice, this is the last year that the IRS will provide good-faith penalty relief, since it was intended to be transitional relief only.

Download the bulletin for more details.