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Showing results for tags 'aca penalties'.
Our client just filed their 2019 1095-Cs with the IRS. They were overlooked back in the spring (an extension to May 1 was filed) due to COVID/PPP things, and we just realized they hadn't been filed last week. No letter has been received from the IRS. Technically, a penalty of $270 per record could be charged. But do any of you know if the IRS is actually assessing the penalty when the taxpayer files them on their own, without the IRS having to get involved? Please give us some good news! And yes, the forms were distributed to the employees timely.
IRS has made several announcements of when they expected to start sending notices to large employers regarding 2015 ACA penalties (originally targeted October 2016 then delayed to March 2017, then June, yada yada). Has anybody seen an IRS ACA large employer penalty notice for 2015 yet? Suspicion is they can't get the data matching to work and no employers will ever pay ACA penalties for 2015 (and maybe 2016, etc.). I recall the ACA revenue projection from employer penalties was $3B per year or more.
IRS permitted individuals to file 2016 tax returns without answering the ACA penalty question (so if you owed the penalty you didn't have to fess up and pay with your tax return). Have they done any follow up with those taxpayers or does it appear nobody had to pay for 2016? I know they keep saying the penalty is still in effect but wondering if enforcement has slacked off.