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.