TaxBandits’ Guide to Finalized Forms 1095-B and 1095-C for Tax Year 2023

The IRS finalized Forms 1095-B and 1095-C for Affordable Care Act reporting, learn what's in store for 2024!

Stephanie Glanville | October 27, 2023 | Read time: 6 minute(s) | Deadline, Form 94x Series | No Comments

Exciting news for businesses gearing up for the 2024 ACA reporting season! The IRS has officially released the finalized ACA Forms 1095-B/C, just in time for you to kick-start your organization’s reporting process.

In this time-saving guide, we’ll cut to the chase and walk you through the updated forms, instructions, and new ACA reporting requirements for 2024 that are set to impact your filing

What is ACA Reporting with the IRS?

Let’s start at the very beginning in case your business is completing 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 making healthcare more accessible and affordable for people. It helps individuals and families get health insurance coverage, often through government programs or marketplaces.

The ACA also introduces important protections, like ensuring that insurance companies can’t deny coverage due to pre-existing conditions or charging exorbitant rates. It’s essentially designed to make healthcare less complicated and more inclusive for everyone. With these new requirements, comes additional filing obligations from the IRS. ACA Form 1095’s are used to verify with the IRS that the coverage being offered is both affordable and adequate.

Filing Requirements and Purpose of 1095 Forms

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

So, let’s begin with a quick refresher on the differences between the 1095-B vs 1095-C forms:

Form 1095-B: This form is typically filed by health insurance providers, employers who offer self-insured health insurance plans to their employees, and any other organization providing health insurance coverage to individuals.

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

For a more in-depth understanding of Form 1095-B and 1095-C, you can refer to the finalized instructions provided by the IRS here.

Finalized IRS Guidelines for 2024

Now, let’s delve into the key changes and deadlines to keep in mind for the 2024 ACA reporting season:

Form 1095-B and 1095-C Deadlines: The IRS has made a permanent adjustment to the deadlines for distributing recipient copies of these forms, extending it until March 2nd. Remember, it’s crucial to meet this deadline as there’s no extension available for furnishing form copies. The deadline for filing electronic copies of these forms remains March 31st, while for paper copies, it’s still February 28th. However, be aware that the next IRS update may affect your chosen filing method this year.

E-filing Requirement: Significant changes to the IRS e-filing thresholds for 2024 mean that your business is likely required to e-file. Starting January 1, 2024, all businesses filing 10 or more information returns to the IRS must file electronically. This is a significant shift from the previous requirement of 250 forms. This new regulation will impact even the smallest businesses and certainly, those the IRS designates as ALEs.

Meet the 2024 ACA Reporting Guidelines with TaxBandits!

Since the inception of Affordable Care Act reporting, TaxBandits has been a trusted partner for businesses navigating the complex world of ACA compliance with the IRS. Our simplified filing process, bulk upload options, built-in audit checks, and recipient copy distribution services eliminate the frustrations of the paper filing process.

In light of the recent changes to e-filing regulations, TaxBandits is here to help your business not only adapt but also streamline your reporting process.

Remember, if your business is seeking a full-service ACA reporting solution, you can reach out to our sister company, ACAwise. The ACAwise team of experts offers a solution complete with 1095-C code generation and more! Click here to request a free quote.