Paperwork Burden Reduction Act
Paperwork Burden Reduction Act
On December 23, 2024, President Biden signed into law two pieces of legislation that will ease the burden on employers and insurance carriers that need to submit information to the IRS and employees on health care coverage. The Paperwork Burden Reduction Act (H.R. 3797) allows employers to use the alternative furnishing method for all Forms 1095-C, Employer-Provided Health Insurance Offer and Coverage. The Employer Reporting Improvement Act (H.R. 3801) changes tax identification number (TIN) requirements and sets definite response times and limitations periods for IRS enforcement of Affordable Care Act (ACA) filing requirements.
The Paperwork Burden Reduction Act (H.R. 3797) amends IRC Sections 6055(c) and 6056(c) by allowing the use of the alternative method of furnishing for Forms 1095-B and all Forms 1095-Cs. This means that reporting entities do not have to send written notices to individuals so long as they post a notice prominently on their website that individuals may receive a copy of their form upon request. Previously, Forms 1095-B and certain Forms 1095-C (i.e., those that only reported enrollment in Part III (1G forms with enrollment)) did not have to be furnished annually. Under the Act, if requested by the participant, the form must be furnished by January 31 of the year following the calendar year for which the return was required to be made or 30 days after the request.
If you would like a copy of your ACA tax documents (Forms 1095-C), please email Amber Archuleta at aarchuleta@cimarronschools.org.