Are You Ready to E-file Benefit Information Returns?

Are You Ready to E-file Benefit Information Returns?

Starting January 1 of this year, e-filing requirements under the Taxpayer First Act take effect. Now, employers that file 10 or more returns in total during a calendar year must do so electronically. This includes Affordable Care Act (ACA) filings. Failing to comply can result in significant financial penalties.

Under the ACA, Applicable Large Employers (ALEs) must report whether they offered affordable, minimum essential coverage to full-time employees. All employers that sponsor self-insured plans must also report months of coverage for enrolled individuals. IRS Forms 1094-C and 1095-C are used to file this information with the IRS; they must also be provided to employees.

Before 2024, employers filing less than 250 returns for Form 1094-C and 1095-C had an option: file via paper or electronically. The 250-threshold applied to each type of return filed. Now, if the aggregate number of returns for all required filings (including W-2s and 1099s plus others) are 10 or greater, electronic filing is the only option.

As noted on the IRS website, “T.D. 9972 affects filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns.”

Different filings must be submitted via the appropriate system. For example, ACA documents will be filed via the Affordable Care Act Information Returns or AIR system, while Form 1099s can be filed for free via the Information Returns Intake System (IRIS). Other returns will be filed via Filing Information Returns Electronically or FIRE system.

You need a separate Transmitter Control Code (TCC) for each system, and it can take some time to receive your code. So, if you don’t already have your TCCs, now is the time to apply.

For 2024, the e-filing deadline for Forms 1095-C and 1094-C is April 1 (since March 31 is a Sunday). Different reporting requirements and deadlines may apply in certain states (i.e., California, District of Columbia, Massachusetts, New Jersey, and Rhode Island).

For more information on e-filing regulations, including hardship appeals, click here. Then, make sure you have the appropriate processes and resources lined up to comply with electronic filing requirements.

Should you have any questions, please don’t hesitate to contact your RBT CPAs client manager. Our experts are also available to help with all of your accounting, audit, tax and business advisory needs throughout the year. Give us a call to learn more.

 

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.