The IRS recently published a notice reminding filers that, despite the repeal of the individual mandate of the Affordable Care Act (ACA) in last year’s tax reform bill, individuals must still indicate on their returns whether they had health coverage.
The ACA remains the law of the land for Tax Year 2018, with individuals still required to maintain and report coverage. The IRS will not consider a return complete and accurate if an individual does not report the relevant health insurance coverage information.
Penalties are still in place for companies that fail to comply with ACA reporting rules, and, in fact, companies that fail to properly execute ACA reporting could face penalties stricter than those that the IRS imposes for 1099 non-compliance.
Find out how Sovos enables companies to stay compliant with ACA reporting.