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The Wagner Law Group

The Wagner Law Group, A Professional Corporation, is a nationally recognized ERISA & employee benefits, estate planning, employment, labor & human resources practice. 

 

Established in 1996, The Wagner Law Group has 22 attorneys engaged exclusively in employee benefits, estate planning and employment law. Six of our attorneys are AV rated by Martindale-Hubbell as having very high to preeminent legal abilities and ethical standards. The firm is among the largest ERISA boutiques in the country. Our practice is national in scope, with clients in more than 40 states and several foreign countries.

 

 

 

 

Contact Info

The Wagner Law Group

 

  Integrity | Excellence

  

Boston 

Tel: (617) 357-5200 

Fax: (617) 357-5250 

99 Summer Street 

13th Floor

Boston, MA 02110


Palm Beach Gardens 

Tel: (561) 293-3590
Fax: (561) 293-3591
7108 Fairway Drive
Suite 125
Palm Beach Gardens, FL 33418

   

Tampa

Tel: (813) 603-2959

Fax: (813) 603-2961

101 East Kennedy Boulevard

Suite 2140
Tampa, FL  33602 

 

San Francisco

Tel: (415) 625-0002

Fax: (415) 358-8300

300 Montgomery Street

Suite 600

San Francisco, CA 94104

 

St. Louis

Tel: (314) 236-0065

Fax: (314) 236-5743
100 South 4th Street, Suite 550
St. Louis, MO  63102 

 

www.wagnerlawgroup.com

 

 

 

 

July 7, 2016

 

 Health and Welfare Law Alert

 

 

 

IRS Confirms ACA Information

 Returns May Continue to be

Electronically Filed without Penalty

 

 

 

 

 

The IRS has confirmed that ACA information return filers that failed to meet the June 30, 2016 deadline for electronically submitting Forms 1094-C (and related Forms 1095-C) via the IRS's ACA Information Return system ("AIR system") will not be penalized for filing late as long as they made "legitimate efforts" to register with the system and file the forms. 


Background.  The Affordable Care Act ("ACA") requires Applicable Large Employers ("ALEs"), self-insured employers and other health coverage providers to file information returns with the IRS to report individuals' health insurance coverage.  The ACA information returns include:

 

  • Form 1094-B, Transmittal of Health Coverage  Information Returns
  • Form 1095-B, Health Coverage
  • Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

While the IRS encourages all filers to electronically submit ACA information returns, entities that are required to file 250 or more information returns are required to file them electronically. The IRS previously established June 30, 2016 as the deadline for entities to electronically submit ACA information returns.  (Note: The deadline for filing paper ACA information returns was May 31, 2016.)


IRS relief.  The IRS has announced that a reporting entity that missed the June 30, 2016 filing deadline will generally not be assessed late filing penalties if it: (i) made "legitimate efforts" to register with the AIR system and file its ACA information returns, and (ii) continues to make such efforts and completes the process as soon as possible.  Accordingly, the IRS confirmed that it will leave the ACA Information Returns system "up and running" beyond June 30, 2016, to allow entities to: (i) complete required system testing; and (ii) continue to electronically file ACA information returns.  Furthermore, the IRS notes that under its information reporting rules, filers that are assessed penalties may still meet the criteria for a reasonable cause waiver of the penalties.


The IRS has also confirmed that filers whose ACA information return transmissions and submissions have been rejected by the AIR system will have 60 days from the date of rejection to submit a replacement without incurring late penalties. In addition, filers that received an "Accepted with Errors" message may continue to submit corrections after June 30, 2016 without penalties, as long as the corrections are timely made.


Takeaway for Employers.  Employers that failed to electronically submit their required ACA information returns to the IRS by June 30, 2016 are advised to continue to work to file their returns as soon as possible.  While the ability to electronically file ACA information returns using the IRS's AIR system remains viable beyond the deadline, employers will only avoid penalties if they continue to make legitimate efforts to complete the process in a timely manner.


The IRS announcement is accessible at:
https://www.irs.gov/for-tax-pros/software-developers/information-returns/affordable-care-act-information-return-air-program

 

 

 

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This Newsletter is provided for information purposes by The Wagner Law Group to clients and others who may be interested in the subject matter, and may not be relied upon as specific legal advice.  This material is not to be construed as legal advice or legal opinions on specific facts. Under the Rules of the Supreme Judicial Court of Massachusetts, this material may be considered advertising.