Increased ACA Reporting Penalties

The recently signed Trade Preferences Extension Act of 2015 has increased the penalties imposed on applicable large employers (ALE) failing to file complete and accurate ACA forms 1094-C and 1095-C in the beginning of 2016 (reporting calendar year 2015 information). However, ALEs making a good faith efforts to accurately complete and file forms timely will not be penalized this first filing year.

ALEs not filing forms 1094-C and 1095-C timely will be assessed the increased penalties:

  • Failure to report to the IRS: $250 per return up to a maximum of $3,000,000 per calendar year (was $100 per return up to $1,500,000).
  • Failure to distribute to employees: $250 per return up to a maximum of $3,000,000 per calendar year (was $100 per return up to $1,500,000).
  • Intentional disregard of reporting requirement: $500 per return with no maximum.

Please note that this Act also increased penalties for other information returns and filings such as the W-2 forms.