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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



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



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

315 Montgomery Street

Suite 904

San Francisco, CA 94104


St. Louis

Tel: (314) 236-0065

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







July 23, 2015


 Health and Welfare Law Alert




ACA Reporting Penalties Increased 




President Obama has recently signed legislation, H.R. 1295 Trade Preferences Extension Act of 2015, which significantly increases the penalties levied on applicable large employers ("ALEs") that fail to file the IRS Forms 1094-C and 1095-C, as required under the Affordable Care Act's ("ACA's") reporting requirements. The increased penalties will apply to the 2015 filings which are due in early 2016.


Background. The ACA imposes significant information reporting responsibilities on ALEs (i.e., employers with 50 or more full-time equivalent employees) beginning with the 2015 calendar year. Specifically, the ACA requires ALEs to report information to the IRS and to employees about the group health coverage it provides and the employees who are eligible for such coverage. IRS needs this information to: (i) administer ACA's individual and employer mandates, and (ii) to determine which employees may be eligible for a premium tax credit if they purchase health insurance through a Health Insurance Marketplace.


Employers must begin making such filings starting with the 2015 calendar year.


Increased Penalties under H.R. 1295. The general penalty for failure to file a required information return with the IRS will increase from $100 per return to $250 per return. The cap on the total amount of penalties for such failures during a calendar year will increase from $1,500,000 to $3,000,000.


If the filing failure involves both an information return (e.g., Form 1095-C required to be filed with the IRS) and a payee statement (e.g., Form 1095-C required to be furnished to the individual), the penalties are doubled. If the failure is caused by intentional disregard of the reporting requirements, the new $250 penalty is doubled to $500 for each failure, and no cap applies to limit the number of penalties that can be applied with respect to that calendar year.


Action Steps for Employers. Employers should note that the new penalty amounts do not affect the IRS's enforcement policy for the first year of ACA filing. In particular, the IRS will not penalize employers that can demonstrate they made good faith efforts to comply with the ACA's reporting requirements. The increased penalties will apply, however, to filing failures if an employer cannot satisfy the good faith efforts standard.


H.R. 1295 is available at: http://www.gpo.gov/fdsys/pkg/BILLS-114hr1295enr/pdf/BILLS-114hr1295enr.pdf






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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.