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Federal Register / Vol. 86, No. 231 / Monday, December 6, 2021 / Proposed Rules
section 6056 is consistent with Notice 202076.
Under these proposed regulations, 301.60561g1 is proposed to be amended to provide that ALE members are granted an automatic extension of time, not to exceed 30 days, in which to furnish the written statements to fulltime employees. Because the extension is automatic, the proposed regulations eliminate the requirement in 301.60561g1iiA that an ALE
member make a written application to the IRS showing good cause or to otherwise request an extension of time to furnish the statement. Under this proposed amendment to the regulations, statements Forms 1095C furnished to full-time employees will be timely if furnished no later than 30 days after January 31 of the calendar year in accordance with applicable Internal Revenue Service procedures and instructions. If the extended furnishing date falls on a weekend day or legal holiday, statements will be timely furnished if provided on the next business day. See section 7503. The automatic 30-day extension would replace both the 30-day extension for good cause in 301.60561g1iiA
and the authorization for the Commissioner to provide automatic extensions in 301.60561g1iiB.

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3. Elimination of Transitional Good Faith Relief As noted in the Background section of this preamble, the preambles to the regulations under sections 6055 and 6056 provided that the IRS would grant transitional good faith relief by not imposing penalties under sections 6721
and 6722 on reporting entities for the reporting of 2015 health coverage and offers of coverage if those entities could show that they made good faith efforts to comply with the information reporting requirements. See T.D. 9660;
T.D. 9661. The Treasury Department and the IRS extended that transitional good faith relief for years 2015 through 2019 in the series of notices that extended the due dates for the requirements for furnishing statements to individuals under sections 6055 and 6056 for those years. See Notice 2016
04; Notice 201670; Notice 201806;
Notice 201894; Notice 201963; and Notice 202076. In Notice 202076, the Treasury Department and the IRS stated that 2020 was the last year that transitional good faith relief would be provided. Thus, the transitional good faith relief from penalties under sections 6721 and 6722 for the reporting of incorrect or incomplete information on information returns or statements is not
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available for reporting for tax year 2021
and subsequent years.
This good faith relief was intended to be transitional to accommodate public concerns with implementing the then newly enacted reporting requirements under the ACA. These reporting requirements have now been in place for six years, and transitional relief is no longer appropriate. Some commenters requested that the relief be extended due to continued difficulty in understanding the reporting requirements, periodic changes to the ACA, and the uncertainty related to the COVID19 pandemic. Although the Treasury Department and the IRS are sympathetic to those concerns, additional good faith relief is not necessary to address them. The reasonable cause exception under section 6724 already provides adequate relief from penalties under sections 6721 and 6722 for filers who have reasonable cause for failing to timely or accurately complete their reporting requirements. Therefore, the Treasury Department and the IRS will discontinue the transitional good faith relief after tax year 2020.
4. Renewed Comment Request on the Section 6055 2016 Proposed Regulations In Notice 201568, the Treasury Department and the IRS announced that they intended to propose regulations under section 6055 that would: 1
Provide that health insurance issuers must report coverage in a catastrophic plan; 2 allow filers reporting on insured group health plans to use a truncated TIN to identify the employer on the statement furnished to a taxpayer; and 3 specify when a provider of minimum essential coverage is not required to report duplicative or supplemental coverage. The notice also invited comments on issues relating to TIN solicitation and provided that until the issuance of additional guidance, reporting entities would not be subject to penalties for failure to report a TIN
if they met certain requirements.
Finally, the notice advised that governments of United States possessions or territories are not required to report coverage under Medicaid and the Childrens Health Insurance Program CHIP and that a state government agency sponsoring coverage under the Basic Health Program is required to report that coverage.
On August 2, 2016, the Treasury Department and the IRS published a notice of proposed rulemaking REG
10305816 in the Federal Register 81
FR 50671 2016 proposed regulations.
Consistent with Notice 201568, the
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2016 proposed regulations proposed to address catastrophic health coverage, truncated TINs, and duplicative or supplemental coverage. With regard to TIN solicitations, the 2016 proposed regulations incorporated the penalty relief in Notice 201568, with certain revisions to the requirements in response to comments. The 2016
proposed regulations also proposed to incorporate the guidance in Notice 201568 related to United States possessions or territories and reporting regarding the Basic Health Program. The 2016 proposed regulations provided that, until the regulations were finalized, reporting entities could rely on the guidance in Notice 201568. In addition, any issuer that voluntarily files returns or furnishes statements on catastrophic coverage before final regulations are issued will not be subject to penalties for those returns or statements. See Notice 201741, 2017
34 I.R.B. 211 Aug. 21, 2017.
The Treasury Department and the IRS
received 16 comments on the 2016
proposed regulations but have not issued a Treasury Decision finalizing the 2016 proposed regulations. No public hearing was requested or held.
The Treasury Department and the IRS
are renewing their request for comments on all aspects of the 2016 proposed regulations and, after considering the comments received, intend to finalize the 2016 proposed regulations as part of any Treasury Decision finalizing these proposed regulations. Written or electronic comments must be received by February 4, 2022.
Statement of Availability of IRS
Documents IRS revenue procedures, revenue rulings, notices, and other guidance cited in this preamble are published in the Internal Revenue Bulletin and are available from the Superintendent of Documents, U.S. Government Publishing Office, Washington, DC
20402, or by visiting the IRS website at http www.irs.gov.
Proposed Applicability Date The regulations under 1.5000A2, once final, are proposed to apply for months beginning after September 28, 2020. For months beginning on or after January 1, 2020, and before September 28, 2020, taxpayers may continue to rely on Notice 202066. Taxpayers may rely on 1.5000A2 of these proposed regulations for months beginning after September 28, 2020, and before the date a Treasury Decision finalizing these regulations is published in the Federal Register. The regulations under 1.60551 and 301.60561, once final,
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