The Internal Revenue Service (IRS) recently issued Notice 2016-70 extending the deadline for furnishing Form 1095-C to employees and extending good-faith transition relief to the 2016 reporting year.
The IRS has extended the deadline for providing statements to employees from January 31, 2017 to March 2, 2017. No extensions beyond March 2, 2017 will be granted for furnishing statements to employees. The deadline for filing with the IRS has not been extended. These deadlines remain February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically.
Penalties for failing to meet these deadlines can be up to $260 per statement up to a maximum of $3,193,000 and $260 per return up to an additional maximum of $3,193,000. However, the IRS has extended good-faith transition relief from penalties for the 2016 reporting year. As with the prior transition relief, employers must be able to show they have made good-faith efforts to comply with the reporting requirements and file on time.