The Internal Revenue Service recently issued Revenue Procedure 2020-45 announcing the cost-of-living adjustments for calendar year 2021. The dollar limitation on voluntary employee salary reductions for contributions to health Flexible Spending Accounts (FSA) did not change, remaining at $2,750 for plan years beginning in 2021.
For additional guidance on FSAs, please review IRS Publication 969.
The IRS also announced limited relief for Form 1094/1095 information returns for the 2020 tax year, similar to the relief provided for the 2019 tax year (Notice 2020-76):
Deadline for Furnishing Statements to Individuals.
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The deadline for furnishing Forms 1095-B and 1095-C to individuals is extended from January 31 to March 2, 2021. Due to this automatic extension, the permissive 30-day extension is not available, and no further extensions may be obtained.
No Extension for Filing Returns With the IRS.
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The relief does not apply to filings with the IRS. The deadlines will be March 1, 2021, for paper filings (because February 28 falls on a Sunday) and March 31, 2021, for electronic filings. Filers may extend these deadlines by application to the IRS.
MedCost will provide further details on 1094/1095 reporting and filings in late November.
If you have any questions, please contact your MedCost Account Manager.