In just 7 minutes Howie Gerver, president of ACA Managed Services, provides 7 key areas where most mistakes occur when completing 1095 ACA reporting forms. Plus, he gives you the questions you need to ask your clients or your staff to avoid receiving Letter226J ACA IRS penalty notices.
AUG 2016 ISSUE: BENEFITS MAGAZINE
"1095 Reporting—What You Don’t Know
Could Be Expensive"
by Howard M. Gerver
President of ACA Managed Services
Employers that failed to file or made errors on Forms 1095-C to every employee and 1094 submissions to IRS face stiff penalties. This article describes likely IRS audit red flags and potential risks in three areas.
We'd like to introduce you to ACA Managed Services and our audit service practice - geared to fixing 2016's data before you get Letter 226J from the IRS.
In November 2017, the IRS started sending out Letter 226J penalty notices to employers. At a threshold of 95% in 2016, there is very little room for error and potentially very high penalty fees. With only a short 30 day reply window to Letter 226J notices, do you really want to rush your analysis. Better yet, when you look back, did you honestly ever think the IRS would be issuing these notices? If not, are you confident your team provided 100% accurate data, especially related to employees who worked part-time, or started or ended employment at busy times of the year for your HR team?
At the end of the day, we can provide cost-effective audit services to find these potential data errors, and if/when the IRS comes knocking at the door, you are not only prepared, but you'll also be sleeping at night knowing this isn't going to be an issue as you proactively fixed 2016's submission -- with our help throughout this process.
To mitigate your risks before you hear from the IRS, you may want to strongly consider a 1095 audit.
While this is not welcome news for employers, employers that did not comply really shouldn’t be too surprised as the IRS among other governmental agencies generally enforce rules, and ultimately collect the respective penalties they are due.
Now is the time to consider a self-audit of 1095-C reporting, as well as organization of documents that may be needed to prepare a response and/or appeal to the IRS. It could save you a great amount of penalty fees.
We welcome a confidential conversation. Please reach out by email to Rob Steir at firstname.lastname@example.org
It’s really quite simple –
- The regulations are complicated
- ACA IRS reporting is new
- Fines and penalties are very high
- Vendors haven’t audited their own products
- There are many moving parts
- Your job could be at risk
Since your employer/vendor just recently processed these forms the information should be readily available. If you’re seeking a sample-based audit, our sample audit report can be delivered in less than 4 weeks. If you’re seeking a 100% data compare audit, than this will likely take more time unless all of the data can be furnished right away.
That all depends upon the comprehensive nature and integrity of your data and well as the importance of quality assurance to your 1095 vendor or software company that is producing your forms.
Given the complexity of ACA IRS reporting you really need a specialist that understands all the nuances of the regulations.
1095 Audit, a service of ACA Managed Services
795 Franklin Avenue
Franklin Lakes, NJ 07417