What is the AIR system? Why do you need to know what this is? How does it relate to tax information reporting? These are common questions human resource (HR) professionals, employers and many other people are asking themselves as they prepare for the first year of mandatory Affordable Care Act (ACA) reporting. The AIR system is the portal the IRS has set up to accept 1094 and 1095 form files that must be reported to prove health insurance. This is a brand new system that has never been used before and is different than the existing FIRE system that is used for 1099 forms. The AIR system has its own features, requirements and functionality. It is complicated and specific only to ACA reporting and has never been used before. Here are some important things to know about electronically filing ACA Information for Tax Year 2015:
- Affordable Care Act Information Returns (Forms 1094-B, 1095-B, 1094-C and 1095-C) must be filed to the IRS using the AIR system (Affordable Care Act Information Return system). ACA information returns may not be filed using the FIRE system.
- The only acceptable electronic file format for transmission is XML.
- Each transmission is limited to 100 MB. Transmission larger than 100 MB must be split and can be sent in batches.
- The TCC (transmitter control code) application is now available online.
- There are three types of TCC’s available: Developer, Submitter and Filer.
- AIR Testing (AATS) for Tax Year 2014 returns (voluntary year) began July 29, 2015 and is currently in progress. Tax Year 2014 returns may be filed beginning October 22, 2015.
- Corrections are not required for Tax Year 2014 returns (voluntary year). However, corrections that are submitted will be accepted.
- Corrections will be required for Tax Year 2015 returns (mandatory year).
- Returns for Tax Year 2015 (mandatory year) must be filed with the IRS electronically by March 31, 2016.
- The finalized publication of ACA Information Return Forms for Tax Year 2015 (mandatory year) have been posted to IRS.gov.
Check back often over the coming weeks to learn more about AIRS Testing, ACA information reporting compliance and how to prepare for this whole new area of reporting.
