AIR Testing and ACA Reporting: Additional Important Information

Sovos
October 30, 2015

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.

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Author

Sovos

Sovos is a global provider of tax, compliance and trust solutions and services that enable businesses to navigate an increasingly regulated world with true confidence. Purpose-built for always-on compliance capabilities, our scalable IT-driven solutions meet the demands of an evolving and complex global regulatory landscape. Sovos’ cloud-based software platform provides an unparalleled level of integration with business applications and government compliance processes. More than 100,000 customers in 100+ countries – including half the Fortune 500 – trust Sovos for their compliance needs. Sovos annually processes more than three billion transactions across 19,000 global tax jurisdictions. Bolstered by a robust partner program more than 400 strong, Sovos brings to bear an unrivaled global network for companies across industries and geographies. Founded in 1979, Sovos has operations across the Americas and Europe, and is owned by Hg and TA Associates.
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