The IRS generally releases drafts for the ACA forms that filers will use for the upcoming tax year over the summer before the deadlines. This means the new drafts Forms of 1095-B and 1095-C have dropped for the 2023 tax year.
Now is a great time to review these forms in preparation for the upcoming tax season, and get your ‘ducks in a row’ so to speak.
This blog will provide an overview of any changes to the drafted forms, changes to the reporting requirements, and some helpful general information about 1095 forms.
What are ACA 1095 Forms?
The ACA 1095 forms are used to report certain information about health insurance coverage as required by the Affordable Care Act (ACA). The Affordable Care Act was passed in 2010 and the goal of this legislation was to increase the quality and affordability of health insurance coverage in the United States while reducing the number of uninsured individuals.
The ACA created some additional requirements for businesses and health insurance providers and added some additional filing requirements with the IRS.
Form 1095-B: This form is used by any provider that offers minimum essential coverage health insurance to individuals. This can also include businesses that offer self-funded insurance coverage to their employees. Click here to see the IRS draft of Form 1095-B.
Form 1095-C: This form is used by Applicable Large Employers (ALE) to report in-depth information about the health insurance coverage that they offer to their employees. ALEs are employers with 50 or more full-time and full-time equivalent employees that are required under the ACA to provide affordable health insurance coverage to all eligible employees. Click here to view the IRS draft of Form 1095-C.
Do the New 1095 Drafts Contain Any Major Changes?
The good news is no! The drafts of 1095-B and 1095-C that the IRS has released don’t contain any notable changes that will affect or change the filing process for the 2023 tax year. If your organization has completed the process in past tax years, you will essentially need the same information and there will be no additional requirements to complete the forms successfully.
When is the Deadline for Furnishing Recipient Copies?
The IRS made a final judgment about the deadline for distributing recipient copies at the end of 2022. After many consecutive years of providing an automatic extension for furnishing recipients with a copy.
While the original deadline for this was January 31st, it was repeatedly moved back to March 2nd. The IRS has now permanently moved the deadline to March 2nd. For the 2023 tax year, the deadline to distribute copies is March 4, 2024.
What are the Requirements for E-filing ACA Forms 1095?
The IRS has also made some recent changes to the filing thresholds that will take effect in the 2024 calendar year. This will impact the majority of organizations that are required to complete ACA reporting with the IRS. Now, instead of filling up to 250 paper forms 1095, the IRS will only permit 10 paper forms collectively.
This update to the filing thresholds will likely affect any and all businesses or providers that are filing paper forms to make the permanent shift to filing electronically.
Get Ahead of ACA Reporting with TaxBandits!
The TaxBandits team knows that while there aren’t any major changes to the 1095 forms themselves, there are some updates to the requirements for filing them. That’s why we offer a simple solution for e-filing 1095 forms, complete with the 1094 authoritative transmittal.
We offer an option for uploading your form information in bulk and have built-in audit checks to help you prevent errors. Plus, you can easily distribute your recipient copies using our postal mailing and secure online access services. Create your free account today to get started!
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