Thursday, June 2, 2016

Affordable Care Act Compliance Penalties

If an ALE (Applicable Large Employer), or anyone else who has to file information returns under the Affordable Care Act (ACA), fails to comply with this new ACA reporting requirement, they may be subject to IRS penalties and fines. And remember: penalties apply to both the forms that were supposed to be sent to the IRS but weren’t and forms that were supposed to be sent to your employees/recipients but weren’t.

Your potential penalty is determined by when your forms are received by the IRS (or your recipients) without any errors. If you send your completed return
  • within 30 days of the deadline, you’ll be charged up to $50 per form.
  • after 30 days after the deadline but before August 1, you’ll be charged up to $100 per form.
  • after August 1 or not at all, you’ll be charged up to $250 per form.

There are regulations in place to cap the total amount you can be charged each year (the largest limit being $3,000,000), however, the IRS does reserve the right to increase these charges if they find evidence of willful intent not to file.

The IRS is offering exemption from these filing penalties for the 2015 filing year, which is completed this year (in 2016) if you can prove you made every effort to file your return correctly and on time.

You can avoid these penalties by filing on time and correctly, which is where ExpressIRSForms comes in. While we can’t make you file on time, it is our policy to remind you of any upcoming deadlines, and all of the bonus features we pack into our program will help make sure your return is error-free. So give it a try today!

For help getting started e-filing your ACA forms, or if you have any questions, don’t hesitate to reach out to our customer support team. We’re available by phone (704-684-4751) and live chat Monday through Friday, 9:00 a.m. to 6:00 p.m. EDT, and by email ( 24/7.

Looking for something a little less hands on? Check out ExpressACAForms, our all-in-one, full-service ACA e-filing solution.

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