No Slipping through the Cracks: IRS Will Be Able to Catch an Employer’s ACA Noncompliance

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There is still time to figure out how your company is going to meet its Affordable Care Act (ACA) reporting requirements for the IRS. Though you might just be hoping that the IRS won’t know you’re there as long as you file other returns on time, its new processing system specific to ACA returns will catch up with you. It’s called AIR (Affordable Care Act Information Returns) and we tell you about it in this 2-minute video: “What’s the rush for my organization to be ready? Is the IRS really going to be ready to act on ACA enforcement?

Hear us talk about just how the IRS has revved up to handle all the new forms. The IRS has spent over $921 million on this system. It will cross-reference returns from employers with returns from individuals, insurers and the state and federal exchanges.

If your business meets the description of an employer that must comply with the ACA, you must produce the new 1095-C form for every ACA-defined full-time employee at the same time you are producing W-2 forms for all employees. You then must file copies of these forms with the IRS. If you are self-insured, you must produce an ACA form for every covered employee, regardless of that employee’s full-time status.

Should you choose to ignore all the flags raised around you and not produce or file any of these forms, be aware that you could get penalized at a rate of $500 per required return.

So, let’s break this down one more time:

  • For ACA filing purposes, you are required to produce a new ACA form for some employees in the same timeframe you’re producing W-2 forms for all employees.
  • 1095-C forms are tougher to produce than W-2s.
  • Copies of the 1095-C forms you gave to employees have to go to the IRS.
  • If your company fails to produce or file these forms, you’re facing a steep penalty per every required form that you didn’t produce or file.

At Integrity Data, we are doing our level-best to keep you informed on all ACA employer reporting responsibilities. For clarification on the difference between IRS Form 1095-C and a W-2, tune into this video: Affordable Care Act reporting 101: IRS Form 1095-C.

We will all get through this together: Integrity Data is committed to helping those in need of answers to their Affordable Care Act reporting questions. We strive through our software and our educational materials to make it all go smoothly for you. For further information on our resources for Affordable Care Act compliance, please visit our website at

by Integrity Data

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