IRS Releases 2023 Final Forms and Instructions for Forms 1094 and 1095

The IRS recently released both the final forms and instructions for Forms 1094-B/C and 1095-B/C for the 2023 reporting year. Forms 1094-C and 1095-C are filed by applicable large employers (ALEs) to provide information that the IRS needs to administer the employer mandate penalties and eligibility for premium tax credits, as required by the ACA under Section 6056. Form 1094-B and 1095-B are filed by minimum essential coverage providers (e.g., insurers and self-insuring employers) to report coverage information in accordance with Section 6055.

Overall, most of the formats and rules remain the same as those in the previous year. No new codes or lines were added, so the forms should be very familiar to employers with reporting obligations in prior years. As a reminder, employers can rely on the permanent extension for distribution of forms to covered individuals, which is now March 2 of each year.

Major Change for Small Employers
The major change for reporting beginning in 2024 (for the 2023 reporting year) is the new requirement that filers may only file via paper if they are filing fewer than 10 forms. Filers with 10 or more forms must file electronically, which is a significant change for smaller employers who may have relied on paper filings in the past. Employers may request a hardship waiver from the required electronic filing by submitting Form 8508. Employers who are required to file electronically but fail to do so without reasonable cause (and do not have an approved waiver) may be subject to a penalty of up to $310 per return. Additional information on the new electronic filing requirement can be found in our March 2, 2023 Compliance Corner article and in the respective form instructions below.

2023 Form 1094-C »
2023 Form 1095-C »
2023 Form 1094-B »
2023 Form 1095-B »
2023 Instructions for Forms 1094-C and 1095-C »
2023 Instructions for Forms 1094-B and 1095-B »