Year-End Affordable Care Act: Reporting Gifts

Congress just passed two laws that are headed to the President’s desk for signature, which eases the Affordable Care Act (ACA) reporting compliance for 2024. 

The Paperwork Reduction Act has eliminated the need to send IRS Forms 1095–B/C to covered individuals under their health plan, provided these individuals are given notice of their right to request a form and the form is provided within 30 days of the request. 

The Employer Reporting Improvement Act permanently allows a taxpayer’s birthday to be used on the forms in lieu of a Social Security number. The act also permits forms to be provided electronically to covered individuals if they previously consented to electronic disclosure. Lastly, the Act provides a 90-day response time to Employer Shared Responsibility Payment letters from the IRS, and it provides for a six-year statute of limitations. 

While neither of these laws lifts the significant burden of ACA reporting, they do help ease overall compliance.