The Affordable Care Act (ACA) created reporting requirements under Internal Revenue Code Sections 6055 and 6056 that require certain employers to provide information to the IRS about the health plan coverage they offer (or do not offer) to their employees.
The annual deadline for the 2017 calendar year was Feb. 28, 2018, or April 2, 2018 (March 31, 2018, being a Saturday), if filed electronically. Missing this deadline can result in severe penalties of $260 per return with a maximum penalty of $3,218,500 per organization. Moreover, if the IRS determines that an organization intentionally failed to file their reports, the penalty amount will be $530 per return without limitations.
What to do if You Missed the Deadline
If you missed the filing deadline, it’s important to remember that filing late is better than not filing at all. It can also result in a reduced penalty amount.
If an organization files within 30 days of the due date, the IRS will reduce the penalty for late filings from $260 to $50. Filing after 30 days past the due date but before Aug. 1 will result in a penalty of $100 per return with a maximum of $1,609,500.
For More Information
To learn more about ACA reporting requirements, or what else you can do if you missed the deadline, please contact us today.