Category Archives: ACA Law

IRS Mandates Electronic Filing for more than 10 Forms (1094 and 1095) for tax year 2023

Attention Self-Funded/Level-Funded Small Employers under 50 employees

Electronic Filing: Previously, employers had the option to submit their ACA reporting forms on paper if their total filings numbered fewer than 250. However, starting in 2024, employers who submit more than 10 returns collectively are mandated to file electronically. This effectively eliminates the paper filing option for almost all employers, unless they are granted an exemption due to hardship.

Deadlines: Employers are required to file to the IRS by April 1, 2024 when filing electronically. Additionally, employers must provide the relevant Form 1095-B or 1095-C to their eligible employees by March 1, 2024. The deadline for furnishing Form 1095-B/1095-C has been automatically extended from January 31, 2024, to March 1, 2024, with no further extensions granted.

Electronic Filing Waiver: Employers have the option to petition for a waiver from the mandatory electronic filing if they can demonstrate that electronic filing would pose an undue hardship or conflict with religious beliefs. Requests for waivers must be submitted at least 45 days before the return due date, but no later than the due date itself. Waiver requests utilize Form 8508, Application for a Waiver from Electronic Filing of Information Returns. First-time waiver applicants for any of the specified forms will automatically receive approval. If citing undue financial hardship, the applicant must obtain current cost estimates from two service bureaus or third parties and include them with Form 8508.

Penalties: Failure to file electronically when required, without an approved waiver, may result in a penalty of $310 per return, unless reasonable cause can be established. The penalty for failure to file a correct information return is $310 per return, not exceeding $3,783,000 in total for a calendar year. Similarly, the penalty for failure to provide a correct payee statement is $310 per statement, not exceeding $3,783,000 in total for a calendar year.

Obamacare (ACA) Ruled Unconstitutional in Texas, but This Fight is Far from Over

Uncharacteristically late on Friday evening December the 16th, a Texas U.S. District Court Judge (Reed O’Connor) held that the Affordable Care Act was unconstitutional and should be entirely struck down. The basis of this argument is that the recent decision by Republican Congress to remove the tax penalty for people who do not have health insurance, now places the law in opposition to the constitution.

The decision is certain to be appealed. In fact, house leader Nancy Pelosi almost instantly challenged the decision and said that when Democrats take the house in January, they will certainly appeal. This is widely anticipated to lead to a very long legal battle between Democrats and Republicans.

In the meantime, the current ACA law stands. The white house released a formal statement reiterating just that. White house press secretary Sarah Sanders stated that, “Obamacare will remain in effect while the case is appealed”.

Most legal scholars believe that this case will ultimately be heard by the supreme court. Until then nothing will change with how our current healthcare system operates.

This means that Employers must still comply with the Employer Mandate. ACA Reporting is still required by law and employees must receive their forms 1095C no later than the extended deadline of March 4th 2019, for the 2018 reporting year.

IRS Deadline Extended 2019: Employers get extra time to distribute form 1095-C

The IRS has yet again extended the annual deadline for distributing form 1095-C for the 2018 tax year. The new deadline for form distribution to full time employees (required under the Affordable Care Act ACA) is March 4, 2019. This deadline was extended from the original due date of Jan 31, 2019 effectively giving large employers 32 additional days to comply.

On November 29th the IRS released notice 2018-94, which serves to extend the due date for certain 2018 information-reporting requirements for insurers, self-insuring employers, and certain other providers of minimum essential coverage under section 6055 of the Internal Revenue Code (Code) and for applicable large employers under section 6056 of the Code.

The notice specifically mentions that failure to comply with new due dates will result in penalties for Applicable Large Employers (ALEs). The notice states “Employers or other coverage providers that do not comply with the due dates for furnishing Forms 1095-B and 1095-C (as extended under the rules described above) or for filing Forms 1094-B, 1095-B, 1094-C, or 1095-C are subject to penalties under sections 6722 or 6721 for failure to timely furnish and file, respectively. However, employers and other coverage providers that do not meet the relevant due dates should still furnish and file.”

ACA Reporting Service is a leading full service vendor for ACA reporting since the inception of the law in 2014. We work directly with employers as well as partnering with HR firms, Staffing companies and many others needing an expert partner for backend fulfillment for their clientele. Reach out to our customer service team for more details at 888-978-8310 or email us: