Employer failed to file 1094-C and 1095-C with IRS

[DIAJEN]

Just started a new job as an HR Generalist and we've discovered that our Employer failed to file 1094-C and 1095-C with the IRS. We are a self-insured ALE. The entire department retired this summer, we don't know what the IRS has been told.

I heard we got a letter that our extension was denied, but I don't have a copy of the letter. I don't have records of any other correspondence.

The employees did receive their forms. I am not sure where to start with the IRS.

[Luke Bailey]

Secure copies of the forms you gave employees. If 250 or over, make sure you secure an electronic copy.

It's not clear to me whether you have been contacted by IRS about failure to file. In any event, you will likely be contacted by IRS telling you that they have not received and giving you 30 days to file. At that point, you will need to file, electronically if 250 or more. You can probably get an extension. If you want to accelerate this process, discuss with your legal counsel. You can of course call the IRS group that is handling 1094-C and 1095-C delinquencies. You have plenty of company, so it should not be hard to find the phone #.

 

[Benjamin Davis]

Good Afternoon Diajen,

Congratulations on your new job. As a Self-Fudned ALE, your employer was required to file in 2015. If your employer failed to file, they likely received a Letter 5699. This letter says you need to submit your filing in 30 days. Extensions are almost always granted.

The very first thing I would do, even before you finish reading this post, is to call 877-571-4712. That's a special IRS number, specifically for dealing with Letter 5699 (and Letter 226J, which the IRS sends if you did your ACA filing incorrectly). The people at this line are very helpful. Explain your situation, and ask for an extension. It is VERY likely they will grant it.

Once you have gotten the extension, give me a call at 954-983-9970 x102. I will assist with triage on this issue. Determine if you also did not file for the 2016 and 2017 reporting years, as well as your 2018 filings, which are due early next year. Because the extensions are only for 30 days, time is of the essence.

I look forward to hearing from you soon.

Benjamin Davis 
Vice President

Diversified Administration, Inc.
ACA, 5500, Wrap Documents, COBRA, FSA, HRA
Main: (954) 983-9970 | Fax: (954) 983-9695
6161 Washington St., Hollywood, FL 33023

[DIAJEN]

THANK YOU!!

[Chaz]

I have a client who neglected to file the forms with the IRS.  We worked with the client to respond to the IRS's inquiry and I can report that the IRS recently set a letter to the client stating that no further action will be taken.  All in all, a good result!

[Luke Bailey]

Chaz, I think what America wants to know is whether they let your client off the hook with anything less than filing the delinquent filings.

[Chaz]

Dear America: 

The IRS accepted the delinquent filings and assessed no penalties against my client.

Best regards.

Chaz

[Luke Bailey]

OK, thanks very much, Chaz. Appreciate it. That was my assumption.