IRS ACA Reporting: New 1095 Reporting Rules

Tesseon can provide valuable assistance with the IRS revision related to the Affordable Care Act (ACA) reporting requirements under Sections 6055 and 6056 of the Internal Revenue Code. Whether you are a current client or a prospective one, Tesseon is equipped to support you in meeting these obligations.

The IRS has recently implemented a final rule, based on the Taxpayer First Act of 2019, that reduces the threshold for mandatory electronic reporting from 250 returns to just 10 returns. This means that starting in 2024, most reporting entities will be required to file their ACA returns electronically.

To ensure compliance, it is important for employers subject to the ACA reporting rules to explore options for filing their ACA reporting returns electronically. Tesseon can help by providing guidance and assistance in working with third-party vendors or by providing direct electronic filing services.

The process for electronic filing under Sections 6055 and 6056 involves registering to use IRS e-Services tools, applying for the ACA Application for Transmitter Control Code (TCC), and passing applicable test scenarios. Tesseon can guide you through these steps and provide any necessary support.

It is worth noting that a hardship waiver can be requested from the electronic filing requirement by submitting Form 8508 to the IRS. Tesseon can help in preparing and submitting this waiver application, ensuring that you have the necessary documentation to support your request.

Failure to comply with the electronic filing requirement may result in penalties. However, reporting entities can still file up to 250 returns on paper (for returns prior to 2024) without incurring a penalty. Tesseon can help you determine the best filing method for your specific situation and ensure that you remain in compliance with the IRS regulations.

Overall, Tesseon is dedicated to assisting you with all your ACA reporting needs, whether it be through electronic filing support, waiver applications, or general guidance. Contact us today to learn more about how we can help you navigate the IRS revision process.

Explore our recent blog on mastering ACA filing and reporting. Gain insights on why your payroll provider should lead the charge. Contact us now for a demo!