IRS Releases Draft Instructions for 2018 1094/1095-B and 1094/1095-C

September 20, 2018 Tom Hospod

The IRS has published the draft instructions for Forms 1094-B and 1095-B, as well as the draft instructions for 1094-C and 1095-C, to be used in conjunction with ACA filings for Tax Year 2018.

The following changes have been made to the 1094/1095-B Instructions:

  • “Coverage under a section 1115 demonstration waiver program” has been removed from the list of Medicaid programs that don’t meet minimum essential coverage requirements and has been added to the list of “Coverage designated as minimum essential coverage.”
  • The definition of business owner plans has been further clarified: “Coverage provided to a business owner under a plan that is eligible employer-sponsored coverage with respect to at least one employee.”
  • Penalties have increased
    • Failure to obtain a waiver and failing to file electronically: $270 per return
    • Failure to file correct information return or furnish correct payee statements: $270 per failure (Maximum $3,275,000 per calendar year)
  • The filing deadline for electronic filing has changed from April 2 to April 1, 2019

For the Form 1094/1095-C Instructions, the same penalty increases and deadline change as mentioned above are applicable.

About the Author

Tom Hospod

Tom Hospod is a member of the Tax Research Team for the Direct Tax division at Sovos Compliance, where his main areas of focus are Tax Withholding and Automatic Exchange of Information (AEOI). Prior to Sovos, Tom worked as a legislative aide in the Massachusetts House of Representatives. He also has experience in securities law—focusing on broker-dealer disputes and representing clients in FINRA arbitration. Tom is a member of the Massachusetts Bar, earned his B.A. from Boston College and his J.D. from the University of Miami.

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