Oct 12, 2023
Early this year, the Department of the Treasury and the Internal Revenue Service issued final regulations that amended the rules for filing information returns and other documents electronically (e-file) with the IRS. Employers are required to annually file and furnish information returns and statements relating to employee health insurance coverage.
Taxpayer First Act
The amended rules in the final regulations reflect changes made by the Taxpayer First Act to promote e-filing without creating undue hardship on filers. The regulations, which apply to returns that are required to be electronically filed beginning calendar year 2024, include the following changes:
- The threshold for required electronic filing of information returns including 1095-B (self-funded health plans) and 1095-C (fully insured health plans) forms has been *reduced from 250 forms to 10 forms. This will apply to reports relating to health coverage information offered during the 2023 calendar year which are required to be e-filed no later than March 31, 2024.
- Almost all types of information returns covered by the regulation must be aggregated to determine if the 10-return threshold has been met. Earlier regulations applied the 250-return threshold separately to each type of information. Please consult your tax preparer for questions related to the type and number of information returns that must be e-filed under the final regulations.
Penalties for Failing to File Electronically
Penalties of $310 per form/return (for 2023 information filed in 2024) apply if the employer does not file electronically when the electronic filing threshold has been met and is required.
Sterling automatically files all 1095 forms electronically regardless of the size of the employer or the number of forms. This is an included service at no additional cost.
