Past Years' Filing
Why get stuck with hefty fines?
IRS issues Letter 5699 to Employers for Non-Compliant with ACA Reporting.
Are you one of the many employers that have received an IRS Penalty Letter 5699? You are not alone. Many employers are beginning to receive IRS Penalty Letter 5699. The IRS has started to pinpoint Applicable Large Employers (ALE) that have not filed their 1094-C and 1095-C for any previous years. Whether you have failed to file previous year’s forms or you have filed incorrectly, you will be required to do so.
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.
With a Biden administration, anticipated legislation is coming to enhance the ACA, 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 is letter 5699?
Letter 5699, Is issued to inform an Applicable Large Employers (ALE) for the Missing Information on Return Form 1094/1095-C for not being compliant with the ACA Reporting under section 6056 . The IRS is using this letter to make initial contact with an organization that the IRS believes may have been an Applicable Large Employers (ALE), and therefore required to file information returns under the Affordable Care Act (ACA). IRS identifies the noncompliant ALEs based on their W-2 forms reported for the calendar year.
How should I respond to Letter 5699?
Letter 5699 will allow for one response. You must respond with which option is applicable to you within 30 days of receiving their letter.
- Filed the forms under a different EIN. (They are asked to provide the name, EIN and date for when the returns were filed.)
- Should have filed the forms, but did not. (They are asked to either submit the delinquent forms with the response, or provide an explanation of when the returns will be electronically submitted.)
- Was not an ALE, and thus not required to file
- Had an "Other" reason to not file
What should Employers Do?
- Respond to the IRS within 30 days
- File for any prior years
- Evaluate your ACA Compliance plan moving forward
- Contact SyncStream Solutions to help
Have you avoided or missed past years' filing?
Let's face it. We cannot remember to do everything. There is not enough time in the workday to do so. Especially when it comes to the ACA. If you have missed out filing past years' 1094/1095 forms, you will be required to do. Gathering employee data quickly can be cumbersome, overwhelming, time consuming and prone to error.
How can SyncStream help you?
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 is able to populate all codes required for the forms and is able to e-file all years since the inception of the law.
Contact SyncStream Today
SyncStream is ready to help you all of your ACA Compliance needs. You can email our team directly by clicking the Contact our Team buttom below or give us a call at 877-291-9256.