Stay Compliant and On Time: TaxBandits’ Efficient ACA Form 1095-B/C Recipient Copy and E-filing Solutions

March 1, 2024 is the deadline for distributing recipient copies of Forms 1095-B/C. Learn more about these forms and they're deadlines!

ACA recipient copy deadline for Tax Year 2023

February has arrived and there are more IRS deadlines on the horizon for certain businesses, tax professionals, and service providers. While the January 31st deadlines for 1099s and W-2s are in the rearview mirror, there are many more deadlines ahead this tax season.

Affordable Care Act reporting is a critical component of IRS compliance for many businesses. The deadlines for filing ACA 1095-B/C forms and distributing recipient copies are coming up starting on March 1st, 2024.

Is your business required to file 1095-c and 1095-b forms and distribute them to employees or recipients? Here is an overview of ACA reporting requirements, why your business may need to file, and of course – where to start with TaxBandits!

The Basics of ACA Reporting with the IRS

Let’s begin at the very start, especially if your business is tackling this filing requirement for the first time this year. The Affordable Care Act, commonly known as the ACA, is a U.S. healthcare law aimed at enhancing accessibility and affordability in healthcare. This law facilitates individuals and families in obtaining health insurance coverage, often through government programs or marketplaces.

The ACA introduces crucial protections, such as preventing insurance companies from denying coverage based on pre-existing conditions or imposing exorbitant rates. Essentially, it’s crafted to simplify healthcare and foster inclusivity for everyone. However, these new standards bring additional filing obligations from the IRS. ACA Form 1095s are utilized to confirm with the IRS that the provided coverage is both affordable and adequate.

How Does a Business Determine if ACA Reporting is Required?

There are a few aspects to answering this question. First, businesses should be aware of their status as an Applicable Large Employer (ALE). The IRS deems businesses that have 50 or more full-time or full-time equivalent employees to be ALEs. These businesses are also required to complete ACA reporting

Smaller businesses may also be required to file if they offer their eligible employees a self-funded health coverage option. A self-funded health coverage is generally a plan that a business manages and facilitates in-house as opposed to being outsourced by an insurance provider. 

It is also important to note that aggregate ALE groups are also required to complete ACA reporting. An ALE group is a group of related employers that together have a combined total of 50 or more full-time and full-time equivalent employees. These groups are also referred to as ALE members. 

What are the Key Differences Between Forms 1095-B and 1095-C? 

While our team at TaxBandits deals with ACA Forms 1095 daily, we recognize that if you’re responsible for your organization’s reporting, it might have been a while since you last handled them.

Let’s begin with a quick refresher on the distinctions between the 1095-B and 1095-C forms:

Form 1095-B: Typically filed by health insurance providers, employers offering self-insured health insurance plans to their employees, and any other organization providing health insurance coverage to individuals.

Form 1095-C: Usually filed by Applicable Large Employers (ALE), classified by the IRS as businesses with 50 or more full-time and equivalent employees. 

What are the ACA Reporting Deadlines for Tax Year 2023? 

Navigating through the essential deadlines for ACA Forms 1095-B/C in the 2023 tax year is crucial for seamless compliance. Mark your calendars with the following IRS deadlines:

February 28, 2024 – IRS Paper Filing Deadline:

  • Ensure timely submission if you opt for traditional paper filing. This deadline is applicable for those who choose the paper filing method.

March 1, 2024 – Recipient Copy Deadline:

  • Distribute recipient copies promptly by this date to meet the compliance requirement. This ensures that individuals receive their necessary forms in a timely manner.

April 1, 2024 – IRS E-file Deadline:

  • For those embracing the modern and efficient e-filing route, ensure that your submission is completed by this deadline. This marks the final date for electronic filing with the IRS.

What about ACA Reporting at the State Level? 

Alongside the federal filing deadlines, it’s crucial to be mindful of specific state requirements for ACA reporting. The following states mandate ACA reporting with their respective agencies:

Businesses operating in these states should be aware of the additional state-specific deadlines and compliance measures to ensure comprehensive adherence to ACA reporting regulations.

Meet the 2024 ACA Reporting Deadlines with TaxBandits!

With the ACA reporting deadlines barely a few weeks away, TaxBandits is here to provide a simplified e-file and recipient copy distribution solution! Our simplified filing process, bulk upload options, built-in audit checks, and recipient copy distribution services eliminate the frustrations of the paper filing process.

Distributing your recipient copies doesn’t have to be a tedious process. With TaxBandits, you can easily opt-in to Postal Mailing or Online Access options, allowing our team to handle this requirement for your business. 

Ready to begin the process? Create a free TaxBandits account to get started today!

tax year 2023 e-filing

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