Forms 1094/1095 – IRS Updates Guidance for Electronic Filers

David M. Pixley
Recently, the IRS provided further guidance for employers that are attempting to electronically file Forms 1094/1095. Specifically, the IRS will continue to accept returns for 2015 that are filed after the June 30th electronic filing deadline through the Affordable Care Act Information Returns (“AIR”) Program. If your previous transmissions were rejected by the AIR system, you have 60-days from the date of rejection for your replacement filing to be considered timely.

If you filed your Forms and received a message indicating “Accepted with Errors” then you may continue to submit corrected Forms through the AIR system. The IRS reiterated that you will likely not be subject to penalties for failing to file correct Forms if you made legitimate and ongoing efforts to timely register with the AIR system and file Forms 1094/1095 with the IRS. If you are assessed a penalty for failing to timely file, and while it is never a good idea to rely on it in advance, the IRS does have a procedure to apply for a reasonable cause waiver.