ACA Filing: The Big Difference Between Filing Late and Intentionally Disregarding ACA Reporting

Updated September 15, 2020

While the Trump administration continues to push to dismantle the Affordable Care Act (ACA), they haven’t made much progress. The IRS has imposed many penalties since the ACA has been in place. So when your CEO asks if your business really needs to comply with ACA compliance…the answer is YES!

Getting fines for non-compliance is obvious, but even when you do comply there can be penalties. The costs for late ACA filing and intentionally disregarding ACA obligations is enough to cause major harm when the IRS issues reporting penalties.

Determine your ACA Employer Penalties
ACA Employer Penalty Calculator Image

Intentionally Disregarding ACA Compliance Could Be Costly

Let’s be honest here, the current administration isn’t supportive of the existing ACA legislation, yet the IRS has continued to remind businesses that ACA is in full effect. Who do you believe?

As discussed in “IRS issues strong warnings about ACA compliance: Should HR be worried?,” posted by Jared Bilski on, you should follow the guidelines issued by the IRS. The IRS has released several letters guiding employers towards maintaining compliance with the ACA. Although they have yet to issue non-compliance penalties, the IRS has clearly indicated they are ready and able to do so.

Bilski highlights information found in a recent report by the Treasury Inspector General for Tax Administration (TIGTA) indicating that the IRS has a tool to identify non-compliant employers. The ACA Compliance Validation System (ACV) will identify noncompliance and calculate the associated penalty under the Employer Mandate. This tool will enable the IRS to mass identify non-compliance and send notices to those employers for any and all reporting years. The TIGTA report also indicates the IRS expects to issue nearly $228 billion in ACA penalties.

If you have missed any ACA reporting deadlines, now is the time to report. Late ACA filing is certainly better than not filing at all. Besides the non-compliance penalties, there are reporting penalties as well. These are similar to the penalties when you don’t issue a W-2 for employees: the standard penalty is approximately $270 per return with a max of $3,339,000 per year. If found to have intentionally disregarded the reporting requirement, the penalty jumps to $550 with no penalty cap. Either of these penalties could be devastating to any business, large or small.

Protect Your Business from ACA Filing penalties with an ACA Reporting Services

Maintaining compliance with all applicable federal, state and local legislation is essential for every business. Even though ACA is unpopular with the current administration, it remains in full effect. Protect your business from potential penalties and make compliance easy by putting the right technology in place.

Integrity Data’s ACA Full Service Reporting takes the burden off your shoulders because we do all the work for you! It does not require any extensive training or maintenance from you. Our service streamlines data management and automates ACA reporting, saving valuable time as we help to protect your business from non-compliance penalties. Contact Integrity Data for additional information and guidance as you protect your business and maintain compliance with ACA.