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Recently some employers have began to receive IRS notices for not filing their 2015 ACA Forms (1094-B, 1095-B, 1094-C & 1095-C).
Recently the Internal Revenue Service (IRS) has begun to mail out Notice letters to large employers all over the country who have not yet filed their 2015 Affordable Care Act Reporting. These letters are serving as a final effort to inform large employers of their need to file informational returns or face a steep penalty.
Internal Revenue Code (IRC) Section 6056 requires employers that are ALE’s (50 or more FTEs) to file information returns with the IRS and provide statements to their full-time employees relating to the health insurance coverage. ALEs meet these requirements by using form 1094-C and form 1095-C.
Any employer who receives these notice letters from the IRS is required to fill out associated documents and return them to the IRS within 30 days. These documents indicate whether or not the employer has received the notice in error.
The IRS is requiring large employers to provide applicable reporting under Section 6056 no less than 90 days from the date of notice. If employers fail to provide the appropriate informational returns within 90 days they will be assessed penalties under IRC Section 6721. These penalties include:
- Penalty of $250 for each informational return not filed on time.
- Penalty of $500 per for each informational return “intentionally” not filed.
- Maximum Penalty charge of $3,000,000.00 per year for failure to file.
In addition to the penalties above, employers may also face both 4980H(a) and 4980H(b) penalties for failure to provide the right type of health coverage at the right type of cost.
If you are a large employer and received this notice ACAReportingService can help. As a full service provider, we are able to assist with all of your reporting needs, even for the 2015 tax reporting year