2025 is (Almost!) Up and Running

As the 2025 looms near, we already have several ‘big’ benefit items on our desk to tackle after the holidays:

Paperwork Burden Reduction Act

A very welcome and unexpected addition to Sections 6055 and 6056, this bill permits employers to satisfy part (c) of the reporting requirement by making the 1095-C forms available upon request, without requiring an affirmative ‘distribution'. Employers must make employees aware of this with a ‘notice of availability’, and must likewise have a process in place to provide a 1095-C form within 30 days of an employee’s request. (We expect to see a sample ‘notice of availability’ from the IRS shortly.)

The March 31st deadline to file the forms 1095-C and 1094-C with the IRS remains. This bill passed both the house and senate and made its way to the President desk on December 1, where we expect it to be signed. It is also worth noting that this is a bipartisan bill with support across the aisles.

Employer Reporting Improvement Act

In keeping with positive news for employers, the Employer Reporting Improvement Act contains helpful changes for employers that receive a 226J (employer mandate penalty notice) from the IRS. Rather than the short 30 days reply deadline, the new law will permit a 90 day period to respond.

Additionally, the new law confirms a 6 year statute of limitations for penalty assessments under 4980H, the employer mandate. The limitation period begins at the time the applicable 1095-C/1094-C is filed with the IRS. (Under prior guidance, the IRS noted there was no applicable statute of limitations related to 4980H, leaving an infinite exposure for employers. This is good news.)

---