This alert concerns the extension of the deadline for distributing and filing Forms 1094 and 1095.

If you were not already aware, the IRS announced in Notice 2016-70 that the deadline for employers to distribute ACA information reports to employees (Form 1095-C) has been extended from Jan. 31, 2017, to March 2, 2017. This extension does not affect the deadline by which employers must file the required information with the IRS, which remains March 31, 2017 (or Feb. 28, 2017 for employers filing with the IRS on paper). However that deadline can be extended automatically to May 1, 2017 by filing Form 8809.

Also, in a reversal of previous guidance, the IRS decided that the good faith transition relief will be extended for 2016 reporting. Employers who demonstrate that forms and reports were completed in good faith will not be subject to an IRS penalty for incomplete or incorrect information on the reporting forms. Like the good faith standard for 2015, this relief is available only for employers who file and distribute the required forms and reports by the applicable deadlines.