ACA Filing Requirements CONFIRMED

On Tuesday, October 17, 2017, the IRS issued a notice indicating that all Affordable Care Act (ACA) related filing requirements will still be required for 2017 tax return filing.

Here’s the backstory:

  • The ACA includes a provision whereby all those receiving coverage are required to include a Form 1095 with their tax return, proving they had medical coverage; a form usually provided by your employer.
  • Those who did NOT have coverage for the filing year were required to check a box indicating as such, and then would be directed to calculate a penalty amount, also as dictated by the ACA.
  • In January of 2017, President Trump signed an Executive Order that broadly instructed government agencies (including the IRS) to “scale back regulatory reach” on the ACA, implying that individuals could ignore certain filing requirements and the IRS would look the other way, per this order.
  • The IRS never formally acknowledged the Executive Order, until now, where they have essentially said that they plan to enforce the ACA in full, and will reject tax returns that lack the health insurance disclosure.

We recommend you read up on this development. This New York Times article captures many of the core pieces.

At this time, we advise that your firm be prepared to process and file 1095 forms for all eligible recipients, and the employer’s 1094 form accordingly. Final note – while in past years the deadline for distribution / filing forms has been extended, there are NO extensions expected for this year.