KB13-042

Question: Is the IRS offering relief for employers who for CY2015 may be providing incorrect or incomplete information on their Form 1094/1095C submission? 

Answer: The following wording on Page 5 of the 2015 Instruction for Form 1094-C /1095-C:

“Relief from penalties. For 2015 reporting, the IRS will not impose penalties on a filer for reporting incorrect or incomplete information if the filer can show that it made good faith efforts to comply with the information reporting requirements for 2015. No relief is provided in the case of reporting entities that cannot show a good faith effort to comply with the information reporting requirements or that fail to timely file an information return or furnish a statement. However, consistent with the existing information reporting rules, reporting entities that fail to timely meet the requirements still may be eligible for penalty relief if the IRS determines that the standards for reasonable cause under section 6724 are satisfied. For additional information on penalty relief, see the sections 6055 and 6056 FAQs at www.irs.gov/Affordable-Care-Act/Affordable-Care-Act-Tax-Provisions-Questions-and-Answers

***IMPORTANT:  No relief is provided in the case of reporting entities that cannot show a good faith effort to comply with the reporting requirements or that fail to timely file an information return or furnish a statement.

This will constitute a willful disregard for required submission and could lead to a $500 per form penalty.

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Last Review:  November 23, 2015 – Revision: 1.0

Applies To:  ACA Compliance Solution