IMPORTANT NOTICE REGARDING IRS REPORTING
Please read this notice closely. The Affordable Care Act imposes penalties on individuals who do not obtain minimum essential coverage. Individuals associated with your dental practice may be subject to these penalties if your practice does not complete and file new IRS forms.
The Affordable Care Act (“ACA”) requires sponsors of self-funded medical plans to report certain information to their employees and the Internal Revenue Service. If your dental practice is a participating employer in the IDA Insurance Trust, your dental practice is likely required to complete IRS Forms 1094-B and 1095-B. Attached are copies of both forms, as well as instructions.
1. IRS Form 1094-B: This basic transmittal form must be filed with the IRS by February 28, 2018. The Form 1094-B should report the filer’s name (business entity) and related information. (download here)
2. IRS Form 1095-B: The Form 1095-B must be provided to each “responsible individual” (i.e., employee, shareholder, partner or owner) who receives coverage through the IDA Insurance Trust via your dental practice. The Form 1095-B must be provided to every responsible individual no later than March 2, 2018. In addition, copies of the Forms 1095-B must be submitted to the IRS by February 28, 2018*. (download here) Here are brief instructions on the Form 1095-B:
· Part I: Please include information relating to the responsible individual. The code for Line 8 is B.
· Part II: Skip.
· Part III: Please report the name of your dental practice (business entity), employer identification number and other related information.
· Part IV: Please include information relating to the spouse and any dependents covered under the medical plan of the responsible individual.
Also attached is information that you may provide to responsible individuals when you provide them with a copy of the Form 1095-B. (download here)
This memorandum pertains only to participating employers in the IDA Insurance Trust. We encourage you to speak with your accountant and/or tax advisor for specific guidance.
* The IRS has delayed the deadline to furnish employees with Form 1095-B. The prior date was January 31, 2018. The new date is March 2, 2018 (a 30-day extension). The deadline for filing with the IRS remains the same (February 28 for paper filers or April 2 for electronic filers).
The IRS has also extended good faith transition relief to the 2017 ACA filings. A large employer will be eligible for relief from penalties under sections 6721 and 6722 if the employer can show that it made good faith efforts to comply with the reporting requirements. No relief is provided for failure to file or to furnish a statement by the due dates.
Indiana Dental Association Insurance Trust