Groom
Law Group Comments dated June 11, 2025,
Reporting Forms
1094- and 1095-B
Note:
Page numbers are based on the PDF document consisting of 8 pages
(internal page numbering within that document differs).
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Page
no.
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Summary
of comment
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IRS
Response
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1-2
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Forms
1094-B and 1095-B are duplicates of 1095-A, 1094-C and 1095-C.
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The
Form 1094-B and 1095-B are not duplicates, these are considered
transmittals or cover sheets for the filing information required
under Section 6055 for providers of coverage. The Forms 1094-C and
1095-C include the filing information required under Section 6056
for applicable large employers. The Form 1095-A reports
information from the Exchange about a qualified health plan and
premiums for those plans.
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2
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These
form collections requirements are obsolete and major burden to
businesses.
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Section
6055 and 6056 require certain information reporting and these
forms are used to collect that information, neither of which are
obsolete.
IRS
cannot obsolete these forms without a change to the authorizing
statute.
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3
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Form
1095-C could be revised by the IRS, to incorporate any information
the Agency feels is needed from Form 1095-B. Eliminating the need
for 2 forms.
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Section
6055 requires information reporting for providers of coverage; and
Section 6056 requires information reporting for applicable large
employers.
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4
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Amend
IRC 6055, because the regulations and guidance has become
obsolete.
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Section
6055 and 6056 are the tax law provisions that require the need for
Form 1094-C and 1095-C, neither of which are obsolete. IRS cannot
obsolete these forms without a change to the authorizing statute.
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5
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IRC
6055 and 6056 often overlap.
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Section
6055 requires information reporting for providers of coverage and
Section 6056 requires information reporting for applicable large
employers.
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6
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Since
2017, IRC 6055 has a penalty of $0 for an individual’s
failure to have minimum coverage.
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The
Tax Cuts and Jobs Act, Public Law 115-97, enacted December 22,
2017, reduced the individual shared responsibility payment penalty
imposed by Section 5000A to zero percent. This is different and
distinct from Section 6055, 6056, and Section 4980H which imposes
information filing requirements and penalties on employers.
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6
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Health
insurance providers currently must collect information related to
each individual’s health care coverage and submit it on an
individual Form 1095-B. Many taxpayers must pay a service provider
to assist with this reporting. The information, once gathered,
must be provided to both the IRS and the individual, either by
mail or electronically.
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The
IRS may use the Section 6055 information reporting to determine
whether individuals have other coverage that makes them ineligible
for the PTC.
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7-8
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We
believe that this Administration can quickly and effectively
relieve significant burden and save taxpayers millions of dollars
and thousands of compliance hours by amending the current rules to
eliminate unnecessary minimum essential coverage reporting. This
would also eliminate the cost and burden on the IRS related to
processing unnecessary Forms 1095-B. Alternatively, the
Administration could issue a Notice or other subregulatory
guidance providing that unnecessary minimum essential coverage
reporting is not required.
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This
would require a change to the authorizing statute, which IRS
cannot implement.
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