The IRS has announced that electronic Affordable Care Act (ACA) information returns may continue to be filed after the filing deadline, which was June 30, 2016.
These returns are required under Internal Revenue Code (Code) Sections 6055 and 6056, which were created by the ACA. Certain employers must file their returns electronically through the ACA Information Returns (AIR) Program.
The IRS will not assess penalties for late filing on reporting entities that have made legitimate efforts to file information returns, if they continue to make efforts and complete the process as soon as possible. In addition, penalties may be waived in some cases, for reasonable cause.
Employers that missed the June 30 deadline should continue to make efforts to file their returns as soon as possible.
Employers that are not electronic filers but that missed the May 31, 2016, paper filing deadline should also complete the filing of paper returns as soon as possible.
Electronic Reporting Requirement
Any reporting entity that is required to file at least 250 individual statements under Sections 6055 or 6056 must file electronically. The 250-or-more requirement applies separately to each type of individual statement. Entities filing fewer than 250 returns during the calendar year may choose to file on paper, but are allowed (and encouraged) to file electronically.
On Jan. 14, 2016, the IRS issued Notice 2016-4 in order to extend the due date for filing 2015 information returns electronically, from March 31, 2016, to June 30, 2016.
Electronic filing will be done using the AIR Program, which became available on Jan. 21, 2016, for the 2015 tax year returns.
The IRS is aware that some filers are still in the process of completing their 2015 tax year filings. The AIR system will remain up and running after the deadline of June 30, 2016. Reporting entities that were not able to submit all required ACA information returns by June 30, 2016, should still complete the filing of their returns after the deadline.
According to the IRS:
The AIR system will continue to accept information returns filed after June 30, 2016. In addition, employers can still complete required system testing after June 30, 2016.
If a transmission or submission was rejected by the AIR system, reporting entities have 60 days from the date of rejection to submit a replacement and to have the rejected submission treated as timely filed.
If a reporting entity submitted and received “Accepted with Errors” messages, it may continue to submit corrections after June 30, 2016.
Please contact Digital Benefit Advisors for more information on Section 6055 and Section 6056 reporting.