As per the deadline given by the IRS – for all Applicable Large Employer (ALE) and Self-Insured Employer, the last date for e-filing ACA information returns is midnight June 30, 2016.
For all those who couldn’t submit the information by June 30, 2016, it is important for them to know the following –
- The AIR system will continue to run as usual even after June 30, 2016, and the filer can still go ahead and file the ACA information returns. You may also carry out system testing after June 30, 2016 – if there was any legitimate error.
- For all rejections in the process of filing information returns with the AIR, the submitter has 60 days from the day of rejection to resubmit and their rejected submission will be treated as timely filed. It means that there won’t be any penalties associated with resubmission of the information returns.
- For all the submitters who received “Accepted with Errors” message, they can still go ahead and submit after June 30, 2016.
News release from IRS (June 30, 2016) –
“The IRS is aware that some filers are still in the process of completing their 2015 tax year filings. As is the case for other information returns, penalties may be associated with the submission of the ACA information returns for failure to timely file required returns. As the IRS has publicly stated in various forums in recent months, filers of Forms 1094-B, 1095-B, 1094-C and 1095-C that miss the June 30, 2016, due date will not generally be assessed late filing penalties under section 6721 if the reporting entity has made legitimate efforts to register with the AIR system and to file its information returns, and it continues to make such efforts and completes the process as soon as possible. In addition, consistent with existing information reporting rules, filers that are assessed penalties may still meet the criteria for a reasonable cause waiver from the penalties.“
It simply means that those who have missed filing ACA information returns by June 30, 2016, can still go ahead with their respective filing but would be liable for penalties.
Filers who genuinely tried to submit their information returns with the AIR system and it ended in “Accepted with Errors” will not be liable to any penalty. Additionally, filers with reasonable cause for failing to submit information returns within Jun 30, 2016, will get a waiver in their respective penalty.
IRS has also, on many of its forums and news channels, emphasized on paper filers who have missed May 31, 2016, for filing their returns and to complete their proceedings as soon as possible.
For more information and an expert voice on this, please feel free to write to us at support (at) checkmark.com or call us toll-free at 800.444.9922