IRS Relaxes 2016 ACA Deadlines, Penalties

While the June 30 deadline for electronically filing Affordable Care Act (ACA) reports has passed, the IRS has decided to give overdue filers some leniency—this time.

In an announcement, the IRS stated that it would continue to keep the ACA Information Returns (AIR) system up and running past the original deadline. The system is used by the agency to digitally collect Forms 1094-B, 1095-B, 1094-C and 1095-C. So long as a company can demonstrate that it made a “legitimate effort” to submit its reports on time, they will not be penalized.

The softened stance toward penalties, coupled with last year’s reporting deadline delays, has taken some bite out of this inaugural round of ACA reporting. The agency’s relaxed enforcement of the ACA is not expected to continue next year.  

As part of the announcement, the IRS also extended reprieve to paper filers, whose deadline was on May 31. Businesses that have yet to file should do so as soon as possible.