While the time to electronically file Affordable Care Act (ACA) information returns with the IRS passed on 6-30-2016, the ACA Information Returns (AIR) system used to electronically file those returns will remain up and running.
On 6-30-2016, the IRS noted the following on its AIR system home page:
- The AIR system will continue to accept information returns filed after 6-30-2016 In addition, employers can still complete required system testing after 6-30-2016.
- If a filing was rejected, the employer has 60 days to submit a replacement and have the rejected submission treated as timely filed.
- When a filing is “accepted with errors,” employers may continue to submit corrections after 6-30-2016.
- Employers that were unable to submit their returns by June 30 should still file their returns after the deadline. Employers that missed the deadline will generally not be assessed late filing penalties if the employer made legitimate efforts to register with the AIR system and to file its information returns, and it continues to make such efforts and completes the process as soon as possible.
When an employer’s filing is “accepted with errors” due to incorrect name/TIN combinations, it does not necessarily require resubmission; however, the employer should make a good faith attempt at validating the information. Any corrections should be made as soon as possible once the correct information becomes available.
Also, while there is no specific relief provided in the case of employers that fail to file returns by the deadline, relief may be available if the IRS determines that there was reasonable cause for the delay.
Employers that did not file electronically and that missed the 5-31-2016, paper filing deadline should also complete the filing of their paper returns as soon as possible.
About The Authors. This alert was prepared for JACounter by Stacy Barrow and Mitchell Geiger. Mr. Barrow and Mr. Geiger are employee benefits attorneys with Marathas Barrow & Weatherhead LLP, a premier employee benefits, executive compensation and employment law firm. They can be reached at firstname.lastname@example.org or email@example.com.
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