1) BDO COMPENSATION AND BENEFITS MARCH 2016 TAX ALERT 1 www.bdo.com SUBJECT CONTACT: IRS PROVIDES GUIDANCE TO INDIVIDUALS ON WHAT TO DO WITH FORMS 1095 For more information on the Affordable Care Act reporting requirements, please contact: SUMMARY JOAN VINES Senior Director, National Tax Compensation and Benefits (703) 770-4444 / jvines@bdo.com Most individuals are receiving for the first time in 2016 Forms 1095 from employers and insurance companies. These forms support the Form 1040 questions regarding whether each individual in the household had coverage for each month in 2015 and whether or not penalties are due from the individual under the Affordable Care Act’s (ACA) individual mandate. The Forms will also be used by the IRS to verify that individuals who were given federal subsidies for health insurance purchased on the exchange were indeed eligible for the subsidy and if not, to pursue recovery of the overpaid subsidies from the individuals. DETAILS For more information about these forms contact your BDO client service profession or one of the ACA specialists listed herein. The IRS e-mail communication is copied below in its entirety. LINDA BAKER Senior Manager, National Tax Compensation and Benefits (412) 315-2385 / lbaker@bdo.com DON HUGHES Manager, National Tax Compensation and Benefits (713) 407-3190 / dhughes@bdo.com PENNY WAGNON Senior Director, National Tax Compensation and Benefits (302) 838-1605 / pwagnon@bdo.com KIM FLETT Senior Director, National Tax Compensation and Benefits (234) 466-4068 / kflett@bdo.com 

2) BDO COMPENSATION AND BENEFITS TAX ALERT 2 Here’s What You Need to Do with Forms 1095-A, 1095-B and 1095-C You, your employees or your clients may receive one or more forms that provide information about 2015 health coverage. These forms are 1095-A, 1095-B and 1095-C. The following health care tax tips provide some answers to common questions about these forms:  Form 1095-A: What you need to do with this form  Form 1095-B: What you need to do with this form  Form 1095-C: What you need to do with this form For more information on these forms, see our Questions and Answers about health care information forms for individuals. The Tax Practice at BDO is among the largest tax advisory practices in the United States. With 63 offices and more than 450 independent alliance firm locations in the United States, BDO has the bench strength and coverage to serve you. BDO is the brand name for BDO USA, LLP, a U.S. professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded and privately held companies. For more than 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals. The firm serves clients through 63 offices and over 450 independent alliance firm locations nationwide. As an independent Member Firm of BDO International Limited, BDO serves multinational clients through a global network of 1,408 offices in 154 countries. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. For more information, please visit www.bdo.com. Material discussed in this tax alert is meant to provide general information and should not be acted on without professional advice tailored to your firm's individual needs. © 2016 BDO USA, LLP. All rights reserved. www.bdo.com