Electronic ACA Information Returns due to the IRS This Week

If you are a self-insured employer, applicable large employer, or a health coverage provider that is electronically filing ACA Information Returns with IRS, this must be done by this Thursday, June 30.  This deadline was originally March 31, but the IRS extended it for this first year of filing only.  Future years’ filing deadlines will very likely be earlier in the year as the ACA Information Returns process become more standardized.

Electronic filing, via the IRS’ Affordable Care Act Information Reporting (AIR) system, is required if 250 or more 1095-B or 1095-C Forms are being filed, and these filings are essential for compliance with employer requirements of the Affordable Care Act.  Late filings carry the potential for large penalties, which are tiered on a range from $50 to $250 per return.  IRS FAQs on reporting are clear that reduced penalty amounts are still available for 2015 reporting, even with the extended initial filing deadlines.  Therefore, the deadlines for reduction in penalties are also are extended – for this first year only – such that any failures that reporting entities correct by July 30 or November 1, 2016 are be subject to reduced penalties of $50 and $100, respectively.