This blog was last updated on June 27, 2021

Time is marching on. Are you prepared for the first year of mandatory ACA tax reporting? Whether you are a Human Resources and Benefits professional or another individual or department tasked with ACA compliance, here are some key points you should know about how to file and transmit the 1094 and 1095 forms that are now required by the IRS to show an offer of health coverage was made to full-time employees (FTE) for organizations of 50 (FTE) or more:

• AIR Testing (AATS) for Tax Year 2014 returns (voluntary year) began July 29, 2015 and is currently in progress and accepting returns for transmittal.
• The AATS (AIR testing system) portal is slated to open on November 2, 2015 for testing Tax Year 2015 returns.
• Corrections are not required for Tax Year 2014 returns (voluntary year). However, corrections that are submitted will be accepted. Filing corrections for Tax Year 2014 using the new AIR system may be a good way to test out your process.
• The finalized publication of ACA Information Return Forms for Tax Year 2015 (mandatory year) have been posted to IRS.gov.
• More importantly, corrections, if necessary, will be required for Tax Year 2015 returns.
• Although Tax Year 2015 is a good faith year, since this is the first year of mandatory reporting and transmittals to the IRS, you must file on time and make every effort to be accurate when filling out all required data fields. Failing to file or filing past the deadline is not allowed AND you will be subject to newly increased fines.
• Returns for Tax Year 2015 (mandatory filing year) must be filed with the IRS electronically by March 31, 2016.

Don’t wait. Get prepared now.