ACA information returns may continue to be filed after June 30, 2016
IRS provides new guidance on filing Forms 1095-C and 1095-B
TAX ALERT |
Due to the Affordable Care Act (ACA), large employers with at least 50 full-time and full-time equivalent employees are required to submit new Forms 1095-C and 1094-C for 2015 to the IRS. Small employers with self-insured health plans file Forms 1095-B and 1094-B.
The due dates for the forms were May 31, 2016 (if filed on paper) and June 30, 2016 (if filed electronically). Employers filing at least 250 Forms 1095-C are required to transmit them to the IRS electronically, unless they had requested a waiver of the electronic filing requirement by May 15, 2016.
Since the IRS ACA Information Return (AIR) system is new, many employers have experienced technical difficulties with electronically transmitting their forms to the IRS, and some were not able to meet the June 30 deadline. To address these and other concerns, the IRS released an alert on June 30, 2016, providing the following guidance:
- The deadline of June 30, 2016, for electronically filing Forms 1095-C, 1094-C, 1095-B and 1094-B is not being extended; however, the AIR system will continue to accept returns filed after this date.
- Employers that were not able to submit all of their ACA information returns by June 30, 2016, should complete the filings as soon as possible after the deadline.
- Employers can still complete required system testing after June 30, 2016.
- Employers that submitted the forms but received an Accepted with Errors message may continue to submit corrections after June 30, 2016.
- If an employer’s submission was rejected by the AIR system, the employer has 60 days from the date of rejection to submit a replacement. If the replacement is submitted within this timeframe, the rejected submission will be treated as timely filed.
- An employer that missed the June 30 filing deadline generally will not be assessed late filing penalties if the employer has made legitimate efforts to register with the AIR system and to file its information returns, and completes the process as soon as possible.
- Employers that are assessed penalties may still meet the criteria for a reasonable cause waiver from the penalties.
- Employers that are not required to file electronically, and that missed the May 31, 2016, paper filing deadline, should file paper returns as soon as possible.
Based on the above, employers required to file electronically should not file on paper, but instead continue to address their transmission issues and complete their electronic filings as soon as possible. Employers should document all attempts to file the forms electronically including keeping copies of screen shots of the various IRS messages received.