We are neck deep in the current ACA reporting cycle and while the main focus of employers should be meeting their fulfillment and e-filing deadlines, it is important they take note of a clarification recently made by the Internal Revenue Service. The IRS has stated that penalties for noncompliance with the Employer Shared Responsibility Tax have no statute of limitations on when the IRS can impose them. This means that employers are never “safe” or “out of the woods” from receiving penalty letters, even from the very first reporting season, which happened in the spring of 2016. This clarification came from the Chief Counsels Office at the IRS, and the entire memorandum can be read here: https://www.irs.gov/pub/irs-lafa/20200801f.pdf
Affordable Care Act (ACA) compliance is likely the last thing on anyone’s mind during an acquisition.
But that would be a mistake.
Even when everything looks and feels similar after one company purchases another – the same employees, the same company name – that’s not true about their ACA reporting.
Is the Affordable Care Act (ACA) going away, or is it here to stay? This has been an ongoing debate ever since the statute was signed into law.
If you’re an applicable large employer (ALE) that hasn’t yet filed your 1094/1095-C and 1094/1095-B forms with the IRS, and your plan is to paper file, we have some bad news for you. The deadline for Affordable Care Act (ACA) paper filing was Feb. 28, 2019. Your time has run out.
Have you been preparing for tax season as if the Affordable Care Act (ACA) was no longer a factor? We hope not. Because that couldn’t be further from the truth.
Fifth Circuit Rules Individual Mandate Unconstitutional: However, case gets one step further from the Supreme Court
On Wednesday, December 18th, The Fifth Circuit Court of Appeals ruled in a 2-1 vote that the individual mandate of the Affordable Care Act was unconstitutional. As a refresher, the individual mandate required U.S. citizens to purchase healthcare coverage or pay a penalty. However, the penalties were zeroed out as part of the 2017 Republican Tax Reform bill. The zeroing out of the penalties is what initially started the legal process that the Fifth Circuit ruled on yesterday.
At the end of 2018, the Affordable Care Act (ACA) was once again thrown into the legal spotlight when a Texas judge ruled that the law was unconstitutional because the individual mandate was essentially no longer in effect.
How often do nonprofits think about the Affordable Care Act (ACA)? The answer is not very often.
This is a problem – especially if you happen to become an applicable large employer (ALE) without even realizing it.
What’s worse than one penalty? Mounting penalties.
The IRS is sending out Letter 226-J penalty notices to applicable large employers (ALEs) that didn’t provide affordable health care with minimum essential coverage (MEC) for the 2015 and 2016 tax years.
The failure to comply with ACA regulations is no laughing matter. Any employer who’s received a Letter 226-J penalty notice can vouch for that.