This is great news as employers are still struggling to correctly understand, interpret and apply the reporting requirements for their organizations. While it is important to remember that the employer must complete the required forms and do so as accurately as possible, they will not have to be overly concerned about potential inaccuracies on the forms sent to the employee and the IRS. The following excerpt from the notice spells this out in detail:
“Specifically, this notice extends transition relief from penalties under sections 6721 and 6722 to reporting entities that can show that they have made good-faith efforts to comply with the information-reporting requirements under sections 6055 and 6056 for 2016 (both for furnishing to individuals and for filing with the Service) for incorrect or incomplete information reported on the return or statement. This relief applies to missing and inaccurate taxpayer identification numbers and dates of birth, as well as other information required on the return or statement.”
For many employers, personal standards override the government rule. We are hearing that when faced with such new and intensified requirements for workforce reporting, employers immediately equate “good-faith effort” with “mistakes.” To them, that’s not acceptable regardless of what official word they have from the ACA enforcement agency.