Many employers have been receiving IRS Penalty Letter 5699, if the IRS finds that a company has not filed their 1094-C and 1095-C for any previous years. You can respond to the letter usually within 30 days and choose the reason why you have not filed. Some employers may receive other IRS penalty letters for filing late or incorrectly as well.
If you have failed to file previous year’s forms, you will then be required to do so. Or you may have filed incorrectly and will then have to re-file correctly.
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.
Also, with a Biden administration, anticipated legislation is coming to enhance the ACA, so now is the time for employers to assess their ACA processes. There are many speculations about what is to come, but it has already been discussed that ACA enhancements are likely to pass.
Moreover, because the IRS has indicated that it will not renew its good-faith effort penalty relief after 2020, employers should work to ensure proper reporting to avoid ACA reporting non-compliance penalties.
What should Employers Do?
- Filing late for prior years is better than not filing at all.
- Determine your ALE status for previous Years and identify if you need to file.
- Evaluate your ACA compliance plan. Do not be a victim of *ACA Light and become the next penalty letter from the IRS.
- Know how to reply to an IRS letter
Bogged Down With ACA Requirements? SyncStream Takes Away Reporting Stress
At SyncStream, we take the pressure off our clients by ensuring they remain compliant and providing all the reporting assistance our clients need. When you choose SyncStream as your ACA reporting vendor, you can enjoy the following benefits.
- Accumulate employer tracking: You can track your employees using payroll data and monthly measurement methods.
- Avoid unwanted filing costs: You can file with the IRS directly from our software, which allows your business to avoid incurring additional filing costs.
- Increase efficiency: Your employees will be able to focus on other work-related tasks rather than spending valuable time on ACA reporting.
- Manage coverage and plan information: Aggregate your coverage information and employer plan for IRS reports.
- Prepare for IRS e-filing: Prepare and e-file your IRS report directly from the software. You can also submit corrections if needed.
- Populate IRS Affordable Care Act reports: Populate employee statements and generate yearly IRS reports.
- Save time: Our software will save you time by generating reports, managing your data and automatically performing other essential tasks.
Sync Stream Solutions has a team of experts that have experience in assisting companies with responding to their letters, and helping customers file any or all past years’ filings. Our team of experts have been with SyncStream Solutions since the inception of the ACA and are knowledgeable with what is needed for responding to letters and filing correctly for all years.
Our solution populates all of the codes required for the forms and is able to e-file all years since the inception of the law. And we offer packages for all past years’ filings. Contact us at SyncStream today to learn more about our reporting.