What happened?

The IRS issued Notice 2016-70, to formally extend the due date for the ACA reporting for the 2016 tax year (reported in 2017). Beginning with the 2017 tax year, reported in 2018, the deadlines will revert back to their original timelines.

In a somewhat unanticipated related development, IRS Notice 2016-70 also extends the good-faith transition relief from penalties that were granted for 2015 filings to the 2016 information reporting requirements. That relief had always been considered “first year only” forgiveness but in a deeply welcome move, the IRS indicates that good-faith standard relief remains available. According to the IRS, “This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement. No relief is provided in the case of reporting entities that do not make a good-faith effort to comply with the regulations or that fail to file an information return or furnish a statement by the due dates (as extended under the rules described above).”

HUB International will explore the scope of good-faith forgiveness in a future publication, as well as keep you posted about all related ACA and reporting-related developments.

For complete details see:

IRS Notice 2016-70

IRS Questions and Answers on Employer Reporting

NOTICE OF DISCLAIMER

The information herein is intended to be educational only and is based on information that is generally available. HUB International makes no representation or warranty as to its accuracy and is not obligated to update the information should it change in the future. The information is not intended to be legal or tax advice. Consult your attorney and/or professional advisor as to your organization’s specific circumstances and legal, tax or other requirements.