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October 28, 2016


Will you receive an IRS penalty for ACA noncompliance?



Will you receive an IRS penalty for ACA



If you’re an employer with at least 50 full-time or

full-time equivalent employees, this is written for you.


Did you meet the May 31, 2016 extended deadline

(non-electronic) or the June 30, 2016 extended

deadline (electronic) to file IRS forms 1094-C

(transmittal of employer provided health insurance

offer and coverage information returns) and 1095-C

(employer provided health insurance offer and

coverage), under the Affordable Care Act Information

Returns (AIRS) for the 2015 tax year?


That’s a packed question.


Congratulations, if you answered yes. However, don’t stop reading this post yet. Learn how to avoid future potential IRS penalties for Affordable Care Act (ACA) noncompliance and how to streamline the filing process.


If you answered no, there’s still time to submit the necessary information to the IRS. The extended deadline has been extended again.


If your submitted documentation was rejected by the IRS due to errors, you may resubmit.


The extended extension


While relieved about the extension, you’re probably wondering if you’ll face penalties.


According to the IRS, under section 6721, “The reporting entities will not generally be penalized if the reporting entity has made legitimate efforts to register with the AIR system and to file its information returns, and it continues to make such efforts and completes the process as soon as possible.”


As soon as possible, probably means sooner than later. How and when the IRS will enforce penalties for ACA noncompliance is difficult to know. After all, numerous extensions have already been provided. However, if the IRS determines you don’t meet the stated reporting criteria, you may face penalties.


And in the case of rejected AIR forms due to errors, you may resubmit 60 days following the date of rejection so the rejected submission is treated as timely filed.


Why would you risk a potential penalty?


Consider the pricey penalties


The penalties are costly and have already increased.


Annual penalty for failure to file 1094-C form for tax year 2016:


$250 per form - $3 million max ($150 increase and $1.5 million max increase since 2015).


Annual penalty for failure to supply correct employee statement - 1095-C form for tax year 2016:


$250 per form - $3 million max ($100 increase and $1.5 million max increase since 2015).


It’s not too late


If you haven’t submitted your 2015 AIRS, we know your hands are full. You should also be tracking the hours your employees are working in 2016 to determine their eligibility for qualified health coverage throughout the year.


We can walk you through the steps you need to take to meet ACA compliance now and into the future.

RiskRT® is designed for you. We can streamline ACA compliance within your company. The automated recordkeeping system, powered by your payroll data, forecasts when employees are eligible for offers of health insurance. Easily track the exact hours your employees work, including breaks in service. Plus, the system transmits IRS forms 1094-C and 1095-C and distributes 1095-C statements to employees.


We’ll stick by your side, even after you make it to the finish line, to ensure your continued success.