News & Announcements

IRS News for 2020 – Extension for ACA Forms, Standard Mileage Rates, and More

Posted Tuesday, January 7, 2020 6:25 am

Welcome to the new tax year!  Here are some updates from the Internal Revenue Service (“IRS”).

IRS Deadlines Extended for Forms 1095-B and 1095-C

Notice 2019-63 extends the deadline for issuing Forms 1095-B (Health Coverage) and 1095-C (Employer-Provided Health Insurance Offer and Coverage).  Health insurance issuers and applicable large employers (“ALE”) (employers with 50 or more full-time employees, including full-time equivalent employees) that must furnish these forms to individuals now have until March 2, 2020 to provide the required documents.  This extension is automatic; employers and providers do not have to request it.  The IRS will not respond to any requests for further extensions.

The deadlines to file the forms have not been extended.  The deadline for those filing less than 250 forms on paper remains February 28, 2020, and for those filing electronically, the deadline remains March 31, 2020.

Additionally, the IRS has again extended relief from penalties to entities that report incorrect or incomplete information on the return or statement when the entity can show it made a good-faith effort to comply with the information-reporting requirements.  Unlike prior years, the IRS will also waive penalties for failing to furnish Form 1095-B if the employer meets two conditions:

  • the reporting entity posts a notice prominently on its website stating that responsible individuals may receive a copy of their 2019 Form 1095-B upon request, accompanied by an email address and a physical address to which a request may be sent, as well as a telephone number that responsible individuals can use to contact the reporting entity with any questions; and
  • the reporting entity furnishes a 2019 Form 1095-B to any responsible individual upon request within 30 days of the date the request is received.

The IRS will also waive penalties in connection with the requirement to furnish the Form 1095-C to any employee enrolled in an ALE member’s self-insured health plan who is not a full-time employee for any month of 2019.  However, for full-time employees enrolled in self-insured health plans, penalties will continue to be assessed for any failure by ALE members to furnish Form 1095-C.

IRS Issues 2020 Standard Mileage Rates

Notice 2020-05 sets forth the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.  Specifically, the following standard mileage rates for the use of a vehicle are effective January 1, 2020:

  • 57.5 cents per mile for business miles driven, down from 58 cents in 2019;
  • 17 cents per mile driven for medical or moving purposes, down from 20 cents in 2019; and
  • 14 cents per mile driven in service of charitable organizations, which is the same as in 2019.

Other IRS News

Revenue Procedure 2019-46 provides rules for using the optional standard mileage rates in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes.

Revenue Procedure 2019-48 updates guidance for business travelers and their employers for using per diem rates to substantiate the amount of ordinary and necessary business expenses paid or incurred while traveling away from home. 

Income Tax Withholding Assistant for Employers is a new online spreadsheet-based tool designed to help employers, especially small businesses, easily determine the right amount of federal income tax to withhold from their workers’ pay.  It is designed to help employers transition to the redesigned withholding system by helping them implement new income-tax withholding requests from employees who fill out the redesigned 2020 Form W-4.

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