You can expect to see a slight increase in IRS penalties related to the Affordable Care Act for the 2018 and 2019 tax filing seasons, which reflect reporting for the 2017 and 2018 tax years, respectively.

These penalties apply to Applicable Large Employers (ALEs), which are organizations with 50 or more full-time or full-time equivalent employees.

Penalties for Section 6721/6722 address the failure to accurately and completely file returns with the IRS and a failure to accurately and completely furnish statements to the applicable employees, i.e., the IRS 1094/1095 Schedules. For the 2017 tax year, these penalties can reach $260 per individual employee return. For the 2018 tax year, these penalties increase to $270 per individual employee return. Those penalties can add to more than $6 million for combined filing and employee statement distribution failures. Please note, the employer penalties are double for a willful failure, which the employer bears the burden to show that any failure to comply was despite reasonable diligence.

Contact us today concerning your 1095 filings, we can help. (727) 381-9288 or concierge@corporatebenefitsnetwork.com