The IRS updated its Frequently Asked Questions to confirm that penalties will not be assessed for incomplete or incorrect ACA returns filed or statements provided to individuals for 2018 coverage if a good faith effort is made. This is not relief from failure to offer proper coverage.
Under the Affordable Care Act, an applicable large employer (ALE) member may be subject to a penalty if the ALE member fails to furnish Form 1095 data to an individual timely, fails to provide all required information, or includes incorrect information on the return. A penalty may also be assessed if the ALE member does not properly transmit the 1094 data to the IRS.
In a new FAQ, the IRS confirmed that for reporting in 2019 for offers of coverage in 2018, the IRS will not impose penalties on ALE members that can show they have made good faith efforts to comply with reporting requirements. No relief is available for ALE members that cannot show a good faith effort to comply with the information reporting requirements or that fail to timely file an information return or furnish a statement.
The IRS FAQs may be accessed by clicking here and clicking here.
