Don’t Underestimate the IRS When it Comes to Collecting ACA Compliance Penalties
It’s cliché for a reason, the government is rarely ready or capable of following up on many of its own rules and regulations. Many agencies are underfunded, understaffed and simply unable to determine whether businesses are able to comply with many regulations. This cliché is now magnified by the recent election and an incoming president who has vowed to make drastic changes. However, this is not the time to underestimate the readiness of the Internal Revenue Service (IRS) in terms of Affordable Care Act (ACA) compliance. They’ve invested in the program and are already estimating revenues from compliance. Make sure you are ready and remain in compliance by deploying the right technology.
Watch the short video, “Is the IRS really ready to act on ACA enforcement?,” posted on the Integrity Data ACA Education Resources page, and you will see just how ready the IRS really is when it comes time for reporting. While some governmental agencies aren’t able to capture and analyze the volume of data that will certainly arise through the ACA program, the IRS is no stranger to such efforts. The IRS is already prepared to review a high volume of ACA reports and analyze the data using the ACA Information Returns interchange, or the AIR system. The IRS will receive ACA data from applicants, insurance providers, the exchange and from employers. Through the AIR system, the IRS will know quickly whether employees have health insurance and whether it was subsidized, and when employers have offered coverage to their employees at the right time under an ACA-compliant plan. To date, the IRS has invested about $1 billion in this technology. With expected revenues to approach $139 billion, the IRS will be ready to send out penalty notices, quickly.
Deploy ACA Compliance Services and Reduce Your Risk for ACA Penalties
The IRS has already invested a great deal of time and money in ACA compliance and is waiting to see incoming ACA reports. Don’t underestimate the IRS when it comes to ACA compliance, even with the upcoming change of presidential administrations, or fall victim to noncompliance and risk your bottom line to costly penalties due to simple mistakes.
Review the many resources on our ACA Education Resources page and contact Integrity Data for information about the ACA Compliance service options. This powerful system will simplify data collection, automate reporting activities and provide alerts when certain situations arise. Armed with the right technology, you can be ready for ACA compliance and reduce your risk for ACA penalties.