(April 19, 2016, 12:59 PM EDT) -- WASHINGTON, D.C. — Employers will not face penalties for failing to completely or accurately provide employees with a copy of form 1095-C as long as they can show good faith, the Internal Revenue Service said in March 3 guidance.

The reporting requirement, new this year, imposes a $250 penalty for forms provided after March 31, 2016, but allows for reductions to $50 if corrected within 30 days of the deadline and $100 if the returns are made correct by Aug. 1.

The announcement indicates that it...