We have all heard the old adage, “Better late than never.” This logic applies to the 2015 Affordable Care Act filing. The filing deadline for electronic submissions was June 30, 2016; however, the IRS is urging people to continue submitting if they have not yet filed. The IRS has made note that their electronic filing system will remain open and will accept original transmissions from filers. This does not mean that this is a “get out of jail free” card; fines and penalties still could be assessed for neglecting to timely file. However, many of the fines are time dependent.
|Within 30 days||By November 1st||After November 1st||Intentional Disregard|
|Penalty Amount Per Information Return (per 1095-C/1094-C)||$50||$100||$260||$520|
This is, however, not a hard, fast rule to how the IRS will be assessing penalties. As the IRS has said in various forums:
“Filers of Forms 1094-B, 1095-B, 1094-C and 1095-C that miss the June 30, 2016, due date will not generally be assessed late filing penalties under section 6721 if the reporting entity has made legitimate efforts to register with the AIR system and to file its information returns, and it continues to make such efforts and completes the process as soon as possible.”
The IRS notification goes on and says that if penalties are assessed, filers may meet criteria for reasonable cause waiver. This waiver could potentially mitigate fines assessed. As the penalties show, the fine for willful neglect or intentional disregard is much steeper than filing late.
Even though the assessment of penalties is slightly ambiguous, the best practice is to file as soon as possible if the June 30th deadline was missed.
Are you still uncertain of whether your organization needs to file or don’t have a system in place to do so? Attend one of our free, weekly webinars to learn more about the requirements, ask questions, see a live demonstration of Integrity Data’s solution to see that we make compliance and filing as quick, easy and painless as possible.