ACA Compliance is Still Mandatory
This post is for ALEs (Applicable Large Employers) required to comply with the Affordable Care Act. The following is summarized from an article in the ACA Times.
The Treasury has completed a review of tax regulations that appeared to fall under the President’s executive order. None of these reviews included ACA mandated compliance. It is unknown if the ACA was not reviewed due to being under the jurisdiction of the Department of Health and Human Services.
“However, it is clear that the IRS has a mandate to receive and review filings of employers to determine if they have met their obligations under the ACA, and is charged with enforcement of the ACA penalties for failure to do so.
And all signs point to the IRS being prepared to enforce the employer shared responsibility mandate of the ACA.
The IRS, since January has been contacting certain entities that were identified as non-filers to determine if they are required to file.
Information on the IRS website includes the following statement:
‘Legislative provisions of the ACA law are still in force until changed by the Congress, and taxpayers remain required to follow the law and pay what they may owe…’
The IRS expects that the letters informing ALEs that filed Forms 1094-C and 1095-C of their potential liability for an employer shared responsibility payment for the 2015 calendar year (with reporting in 2016) will be issued in 2017.
IRS staff has indicated that it could take 18 months from the IRS filing deadline for the previous reporting year before potential liability letters are issued. With the filing deadline for the 2015 reporting year occurring on June 30, 2016, that would mean the earliest we might see letters is December 2017.”