SyncStream’s New ACA Audit Tool

SyncStream’s New ACA Audit Tool Takes the Guesswork Out of IRS Penalties

ACA Audit is an intelligent import tool that flags employers’ IRS filings
for potential penalty risks

NEW ORLEANS—April 24, 2018—SyncStream Solutions today introduced ACA Audit, the first Affordable Care Act (ACA) compliance tool that helps organizations and their advisors anticipate and respond to IRS audits around ACA reporting. ACA Audit works as an extension of SyncStream’s ACA reporting tools or as a standalone product that analyzes past filings and automates customizable IRS response letters to aid employers as well as brokers, CPAs, attorneys, consultants, and other trusted advisors.

When the IRS finds an applicable large employer (ALE) in violation of the ACA’s requirements, the ALE is issued Letter 226-J, which outlines penalties and fines for noncompliance and gives the ALE 30 days to respond. Whether the issue is improper filing, failing to furnish 1095-C forms to eligible employees, or not offering health care coverage that meets the affordability standard or minimum essential coverage requirements, employers must comb through their data to determine whether they agree or disagree with the penalty and draft a letter in response.

ACA Audit automates that process for employers, HR professionals, brokers, CPAs, attorneys, and consultants for any possible ACA penalties long before they receive Letter 226-J, or when the letter is received and the employer needs to submit a response. Using SyncStream’s proprietary business logic, ACA Audit will analyze and flag any potential liability on each 1095-C form for any filing year, estimate 4980H(a) and 4980H(b) penalties, and produce a comprehensive ACA Liability Assessment Report.

“ACA Audit is the first solution of its kind,” said Arthur Tacchino, Chief Innovation Officer of SyncStream. “It runs a myriad of different logic statements based on our comprehensive knowledge of the health law and its forms to identify vulnerabilities in an employer’s IRS filings. It not only flags blatant errors, but also clerical issues, like missing social security numbers or too many indicator codes on a single form. ACA Audit provides employers with the insight to anticipate any potential violations and prepares them to mitigate any future fines.”

Non-compliance with the ACA can be quite costly for an ALE. For 2015 reporting, an employer could face a monthly fine of $173.33 for each ACA full-time employee that was not offered coverage. If the employer had 100 full-time employees this fine could amount to an annual penalty of $145,598.

ACA Audit is available for both new and existing SyncStream customers. It can be used as a standalone solution that imports filing data, or in conjunction with SyncStream’s other ACA reporting tools, which can pre-populate data into ACA Audit. For more information on ACA Audit, visit

About SyncStream Solutions

SyncStream builds intelligent, intuitive solutions that help employers and their trusted advisors comply with the most complex regulations, from the ACA to EEO-1. SyncStream’s compliance solutions marry existing employer payroll and HR data with proprietary analytics to accurately fulfill legislative requirements and provide the assurance of auditability.

A woman-owned business, SyncStream is the result of some 100 combined years of employee benefits, health care, legal, regulatory, education, and technology experience, and has successfully fulfilled over 2.5 million employee forms and served more than 10,000 customers with well over 90 percent accuracy. Visit for more information.


Gregory FCA
Denise DiMeglio, 610-228-2102
This email address is being protected from spambots. You need JavaScript enabled to view it.