IRS Delays 6055 and 6056 Reporting for 2017

On November 18, 2016, the Internal Revenue Service (IRS) issued Notice 2016-70 to:

  • Extend the due date for furnishing forms under Sections 6055 and 6056 for 2016 for 30 days, from Jan. 31, 2017, to March 2, 2017; and
  • Extend good-faith transition relief from penalties related to 2016 information reporting under Sections 6055 and 6056.

Notice 2016-70 does not extend the due date for filing forms with the IRS for 2016. The due date for filing with the IRS under Sections 6055 and 6056 remains Feb. 28, 2017 (March 31, 2017, if filing electronically).

Filers are not required to submit a request or other documentation to the IRS to take advantage of the extended furnishing due date provided by Notice 2016-70.

Important Dates

  • March 2, 2017:  Deadline for furnishing 2016 Forms 1095-B and 1095-C to individuals
  • February 28, 2017:  Deadline for 2016 filing with the IRS in paper form
  • March 31, 2017:  Deadline for 2016 filing with the IRS electronically

Action Steps

  • The IRS is encouraging reporting entities to furnish statements as soon as they are able. No request or other documentation is required to take advantage of the extended deadline.
  • The IRS does not anticipate extending the deadlines or transition relief from penalties to reporting for 2017.

Extension of Good-faith Transition Relief from Penalties for 2016

Notice 2016-70 also extends transition relief from penalties for providing incorrect or incomplete information to reporting entities that can show that they have made good-faith efforts to comply with the Sections 6055 and 6056 reporting requirements for 2016 (both for furnishing to individuals and for filing with the IRS).

This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement. No relief is provided for reporting entities that:

  • Do not make a good-faith effort to comply with the regulations; or
  • Fail to file an information return or furnish a statement by the due dates (as extended).

In determining good faith, the IRS will take into account whether a reporting entity made reasonable efforts to prepare for reporting the required information to the IRS and furnishing it to individuals (such as gathering and transmitting the necessary data to an agent to prepare the data for submission to the IRS or testing its ability to transmit information to the IRS). The IRS will also take into account the extent to which the reporting entity is taking steps to ensure that it will be able to comply with the reporting requirements for 2017.
 

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