Trust your ACA Reporting to a Federally-licensed Tax Practitioner
Certain employers are required to report to the IRS information about whether they offered health coverage to their employees and if so, information about the coverage offered. This information also must be provided to employees. When it comes to dealing with the IRS, don’t take chances with unlicensed providers, hire a tax professional, hire an enrolled agent for your ACA Reporting needs.
We offer a complete ACA Reporting Service including, Informational Return Preparation, E-File and Print and Mail Service. We complete the entire process, saving you time. Our process is overseen by an Enrolled Agent, licensed by the IRS with expertise in ACA reporting requirements.
Take the first step, schedule a free consultation today.
ACA Full Service Reporting
- ALE and Control Group Determinations
- Affordability Consulting
- Payroll and Medical Carrier Data Formatting
- Complete IRS Forms 1095-C or B and 1094-C or B
- e-file with IRS
- Print and Mail 1095 to employees
ACA Reporting Fees
Employers under 250 lives: $1,500 + $5 per form
Employers over 250 lives: $1,500 + $8 per form
Additional fees apply for multiple employee or coverage classes, banded rates and multiple EINs. Schedule your free consultation today.
Choosing an ACA Reporting Vendor
ACA Reporting is a crowded field with many vendors to choose from. In prior years, many companies were unpleasantly surprised to find out that the vendor solution they chose for ACA compliance did not deliver as promised. The likelihood of an ACA repeal in 2018 means many of these vendors won’t be around next year. This year, be sure you know what you’re buying.
The IRS has limited the liability vendors shoulder when preparing ACA informational returns. Entering into a reporting arrangement does not transfer the ALE Member’s potential liability under section 4980H and (except in the case of a related entity properly designated by a governmental unit) does not transfer the potential liability for failure of the ALE Member to file timely, complete and accurate returns and furnish timely, complete and accurate statements under section 6056. If a person who prepares returns or statements required under section 6056 is a tax return preparer, that person will be subject to the requirements generally applicable to tax return preparers. Ensure your ACA Reporting Vendor is registered with the IRS to prepare returns.
Because ALE Members are responsible for reporting under section 6056, the Form 1094-C that is filed on behalf of the ALE Member must reflect that ALE Member’s EIN. Also, if more than one third party is facilitating reporting for an ALE Member, there must be only one Form 1094-C Authoritative Transmittal reporting aggregate employer-level data for the ALE Member. Additionally, there must be only one Form 1095-C for each full-time employee with respect to employment with that ALE Member.
ACA Reporting Audits
Have you received IRS Letter 5699, Request for Employer Reporting of Offers of Health Insurance Coverage (Forms 1094-C and 1095-C)? If so, here is what it means:
- The IRS is preparing to assess fines. It is clear that the IRS is monitoring non-compliance and has dedicated caseworkers (tax compliance officers) handling this process. The ball is rolling toward penalty assessment.
- Now is the time to file for any tax year you have not done so. If your organization did not file 2016 ACA forms with the IRS, you still can do so. While you may incur a penalty for filing late, it may be possible to reduce your penalty from $530 per form to $260 per form for those not already filed.
- It is important to prepare and file your 2017 returns properly. Regardless of what one reads in the headlines, the 2017 ACA regulations are still in place. Employers must file with the IRS by February 28 to avoid penalties.
How to Respond
The first thing to do is to ensure your reporting was performed correctly and that you do indeed owe a penalty. We speak with employers every single day who will receive these letters from the IRS yet it would have been preventable if they had performed the ACA reporting correctly. Essentially this step involves having an expert to personally review the reporting and conduct an interview with the employer for the purpose of fully understanding what coverage the employer actually offered and to whom an offer of coverage should have been made.
The next step should begin by making any corrections to prior filed forms and submitting those corrections to the IRS. This will leave you in a place of assessing the true penalties you are faced with under 4980H (A) and 4980H (B).
At this point, it is critical that you fully analyze the various transitional relief options to prevent these penalties from being applied. Transitional relief items can be incredibly complex and confusing, and proper application requires in-depth knowledge of many areas of the Affordable Care Act and all ACA reporting areas.
Once you have developed your game plan, you are now ready to respond to the IRS. Depending upon the severity of your outstanding issues, it could make sense at this point to also involved an enrolled agent who specializes in this area. Be aware, there are very few attorneys, CPAs or other tax professionals who truly understand ACA reporting.
If your organization needs support in filing forms 1095-C and 1094-C with the IRS, take the first step, schedule a free consultation today.