The IRS has released the 2016 draft Forms 1094-C and 1095-C. Both draft forms remain largely unchanged from the 2015 versions. However, there are some notable changes.

 

The Form 1095-C draft notes that the “Plan Start Month” box will continue to be optional on the 2016 form. The more significant changes on the Form 1095-C are some code revisions. The Series 1 code 1I, is now labelled as “Reserved”, which was previously “Qualifying Offer Transition Relief 2015”; also two additional codes have been added:

 

1J – Minimum essential coverage providing minimum value offered to you; minimum essential coverage conditionally offered to your spouse; and minimum essential coverage NOT offered to your dependent(s)

 

1K – Minimum essential coverage providing minimum value offered to you; minimum essential coverage conditionally offered to your spouse; and minimum essential coverage offered to your dependent(s)

 

The Form 1094-C has a minor change on Line 22 Certifications of Eligibility: box “B” is now labelled as “Reserved”, which was previously for the “Qualifying Offer Transition Relief”.

 

There is no additional information on the two new Series 1 codes at this time. We expect to learn more about the applicability of the new codes when the 2016 draft instructions are released by the IRS. We anticipate the draft instructions to be available in the coming weeks.

 

To view the 2016 Draft Form 1094-C, click here: https://www.irs.gov/pub/irs-dft/f1094c–dft.pdf.

 

To view the 2016 Draft Form 1095-C, click here: https://www.irs.gov/pub/irs-dft/f1095c–dft.pdf.

 

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

 

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.