While the current administration continues to push to dismantle the Affordable Care Act (ACA), they haven’t made much progress. The IRS hasn’t imposed any non-compliance penalties over the course of these last two years ACA has been in place either. So, that begs the question, should businesses even give ACA compliance a second thought?
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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?
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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. Filing late 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 $260 per return with a max of $3,193,000 per year. If found to have intentionally disregarded the reporting requirement, the penalty jumps to $530 with no penalty cap. Either of these penalties could be devastating to any business, large or small.
Protect Your Business with an ACA Compliance Solution
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.