ACA Reporting is Mandatory
This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. We hope you find it helpful.
The IRS has begun enforcing ACA penalties from prior tax years, and ACA reporting is mandatory for the 2017 tax year.
Employers are still required to file the 1095-C, and late filing penalties as well as penalties for willful non-compliance are being vigorously enforced.
According to the Congressional Budget Office, ACA penalties could total over $200 billion over the next few years.
Here are the ACA filing deadlines for the 2017 tax year from SHRM:
“The IRS issued Notice 2018-06 on Dec. 22, 2017, which extended by 30 days the 2018 due date for distributing 2017 health coverage information forms 1095-C or 1095-B to employees, regarding the health care coverage offered to them.
The new deadline for supplying these forms to employees is March 2, 2018. This 30-day extension is automatic. Employers and providers don’t have to request it.
The due dates for filing 2017 information returns with the IRS were not extended, however. For 2018, the due dates to file information returns with the IRS remain Feb. 28 for paper filers or April 2 for electronic filers.
Notice 2018-6 also extended good-faith transition relief to 2017 information reporting. This relief applies only to incorrect and incomplete information reported on Form 1095-C or 1095-B, and not to a failure to timely furnish or file the forms.”
For those who are last-minute filing, Passport Software provides ACA Full-Service reporting, as well as ACA reporting software to ease the burden of compliance and filing. Our ACA experts can walk you through the process with excellent customer support.
Update as of 11/8/21: Good-Faith Relief was not extended beyond the 2020 tax year. Also, the IRS has not granted extensions on ACA filing dates for the 2021 tax year. The deadline for paper filing is February 28, 2022. The electronic filing deadline is March 31, 2022. Currently, companies with 250+ 1095-Cs must file electronically. Failure to furnish, file, or correct errors on forms 1094/1095-C may result in penalties.