“Filers of Forms 1094-B, 1095-B, 1094-C and 1095-C that miss the 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 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? Watch our free, on-demand webinar to learn more about the requirements and see a demonstration of Integrity Data’s solution to see that we make compliance and filing as quick, easy and painless as possible.