On June 24, 2011, the IRS published final regulations providing an automatic six-month extension for filing Form 8928, which is used to report excise taxes for health plans that fail to comply with certain requirements. To receive the automatic six-month extension, the group health plan sponsor must submit Form 7004 by the original deadline for filing the Form 8928 (which varies depending on the failure giving rise to the excise tax). The sponsor will also need to submit payment of the excise tax along with the Form 7004 because the IRS did not extend the time for payment of the tax.
Form 8928 is used to report excise taxes due when a group health plan sponsor fails to comply with the following Code requirements: Code § 4980B (COBRA continuation and pediatric vaccine coverage requirements); Code § 4980D (failure to comply with HIPAA portability and nondiscrimination, the Newborns and Mothers Health Protection Act and the Mental Health Parity Act); Code § 4980E (failure to make comparable Archer medical savings account contributions); and Code § 4980G (failure to make comparable HSA contributions).
For failures under Code §§ 4980B and 4980D, the original deadline for the Form 8928 (and the appropriate excise tax payment) is the due date for filing the sponsor's federal income tax return. For failures under Code §§ 4980E and 4980G, the original deadline for the Form 8928 (and the appropriate excise tax payment) is the 15th day of the fourth month following the calendar year in which the noncomparable contributions were made.