How to File and Distribute Form 1095-C

With the deadline to file and distribute 1095-Cs approaching, making sure that the right documents get to the right place is essential. The following guide will help you remain both organized and compliant as you file in the coming year.

*This article has been updated to reflect the new proposed IRS regulations regarding the deadline for furnishing forms 1095-C and 1095-B to employees. 

Refresher: What is Form 1095-C?

The Affordable Care Act (ACA) requires employers with 50 or more full-time equivalent employees to offer affordable healthcare coverage that meets the minimum value standard or potentially face a fine. The 1095-C form is the government’s way of tracking this. Essentially, the 1095-C’s function is to communicate health insurance information to the IRS. 

When should 1095-Cs be delivered?

Following recently announced regulation changes, the IRS has set the deadline for furnishing form 1095-C to employees, on March 2, 2022, marking a permanent 30-day extension. The deadline for filing forms with the IRS is February 28, 2022, for those who choose to file paper copies, and March 31, 2022, for those choosing to file electronically.

What are the Acceptable Distribution Channels?

Some organizations are still working remotely due to COVID-19 and more still are moving, or have already moved, into a hybrid schedule. When considering your distribution plan for 2022 it is crucial to consider the best distribution methods for your workplace environment. 

Acceptable ways to distribute 1095-C forms to your employees include mail, hand delivery (if you're not operating remotely), or email (if prior consent is given).

If working remotely, consider a safe method to ensure all employees receive the form in a timely manner. If on a hybrid schedule, many employees may be in the office on different days. It is important to ensure each employee has access to the form at the same time. 

How to File 1095-Cs with the IRS

Forms 1094-C and 1095-C may be filed through the mail or electronically (e-file). All Applicable Large Employers (ALEs) reporting on 250+ employees however are required to e-file. 

Though not always required, the IRS highly encourages employers to file electronically even if they have less than 250 employees. The primary reason for this is to ensure safe delivery. When sending your 1095-C through the mail you take the risk of it being damaged, lost, or even stolen. By sending your forms electronically you ensure safe delivery. You can also count on the IRS receiving your form in a more timely manner. 

If you plan on mailing your IRS forms, keep the following tips in mind:

• Use First-Class Mail

• Do not fold forms (use flat mailing)

• Do not paper clip or staple the forms together

• If you're sending multiple forms, use conveniently-sized packages. If you do this, write your names, number the packages consecutively, and place form 1094-C in package number one.

For further detailed instructions on how to correctly e-file, visit the IRS website. 

If your principal business, office/agency, or legal residence (in the case of an individual) is located in:

Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia

Mail to:

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301

If your principal business, office/agency, or legal residence (in the case of an individual) is located in:

Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming

Mail to:

Department of the Treasury

Internal Revenue Service Center

P.O. Box 219256

Kansas City, MO 64121-9256

Common 1095-C Questions

As your employees begin receiving tax forms, they may have questions regarding form 1095-C and what to do with it. Here are some of the most common questions to consider:

• When will I receive form 1095-C? Employees can expect to receive their 1095-C by January 31, 2022.

• How will I receive my 1095-C form? Employers will mail (or hand deliver, if you’re not working remotely) these forms to employees or send them electronically if they have consented to electronic delivery.

• Do I need to wait for my 1095-C form to file my income tax return? According to the IRS, employees should wait to file their tax returns until they have received all documentation associated with the filing. This includes form 1095-C. Filing without all proper documentation is likely to lead to incorrect calculations and potentially cause delays in returns. While filing without said documentation is not technically prohibited, it is highly recommended, to avoid undue delays. 

• What should I do with the 1095-C form? In short, employees don’t need to do much with this form. Since the issuers of the forms send the information to the IRS separately, employees should keep the forms for their records. 

• I’ve heard that some people receive forms 1095-A and 1095-B. What are those? 1095-As are distributed to people who received insurance through a federal or state marketplace. 1095-Bs are distributed to people who received insurance through small self-funded groups, employers who use the Small Business Health Options Program, or fully-insured employer-sponsored plans.

• Why did I get more than one 1095-C? If you had coverage from more than one provider, worked for more than one employer who offered coverage, changed coverage, or employers, you might receive more than one form. 

• Who receives a 1095-C?  Employers who have more than 50 full-time equivalent employees and are considered ALEs are required to distribute form 1095-C.

• What information is on form 1095-C? Form 1095-C includes information about the health insurance coverage that an individual’s employer offered and whether or not the employee enrolled in that coverage. The primary purpose of the 1095-C form is to communicate any health insurance information directly to the IRS.

• Where can I learn more about the 1095-C? Individuals can learn more about the 1095-C by visiting the IRS website.