New IRS Forms for Implementing the Affordable Care Act

The IRS has released draft versions of a bunch of forms for individuals and employers to make reports required under the Affordable Care Act (ACA). These forms will be used to gather the information necessary to administer the tax credits and penalties provided by the ACA.

• Form 1094-B is the Transmittal of Health Coverage Information Returns which accompanies the filings of Forms 1095-B (below).
• Form 1095-B is the Health Coverage form requesting information about each "responsible" individual policy holder.
• Form 1094-C is the Transmittal of Employer-Provided Health Insurance Offer and Coverage forms contains information about the "applicable large employer" and is to be sent in with the forms 1095-C (below) .
• Form 1095-C is the the Employer-Provided Health Insurance Offer and Coverage form having fields for the social security numbers for all the covered individuals along with information regarding the offer of coverage and the employer share of premiums. It looks like employers will provide one of these forms for each employee.
• Form 1095-A is the Health Insurance Marketplace Statement containing information about health care recipients and their families and other details such as dates of birth, coverage periods, and their premium payments. It looks like employers will provide one of these forms for each employee.
• Form 8965 is the form for Health Coverage Exemptions and is to be attached to individual taxpayers' forms 1040, 1040-A, and 1040-EZ.

This law has lots of moving parts and it is going to be interesting to see how tax preparers deal with all these new forms. I think that I will be one of the few to be prepared for this transition.

- Mark G Gleason CPA
  www.lakes-cpa.com