The following is an excerpt from "Employer Reporting: The Perfect Storm," an eBook from The Plexus Groupe exploring the Affordable Care Act IRS compliance challenges faced by employers. To download the eBook, click here to be redirected to the Plexus Groupe's home page, where you can fill out our quick, simple eForm to be sent a PDF of the book. In this excerpt, author and ERISA attorney Jared Pope highlights why employer mistakes made on IRS Forms 1094 and 1095 could take some time to come to light.
ACA AND THE IRS.
It has been smooth sailing, right?
Look what’s happened with the health exchange marketplace. The IRS had several years to plan for this! Now consider that they are perpetually understaffed, and [are] already having trouble getting your 1040s out on a timely manner. Adding another layer of complexity related to collecting data from the DOL, HHS, and the Exchanges is a nightmare. It’s anyone’s guess on how they [are] going to get all the information reviewed and accounted for on a timely basis. With a bottleneck of this magnitude, if an employer is penalized in 2015, there is a good chance they might not even know they did something wrong until 2017, at the earliest! This means that employers could still repeat the same mistakes before the IRS can finally tell them otherwise.
The challenges associated with the Affordable Care Act are not going away. In fact, they can only get worse for those who choose to ignore the reporting functions required when filing [IRS Forms] 1094-C/1095-C. And although you may be faced with a daunting task that you have no choice but to comply with, it’s all doable when you find the appropriate “Why Partner” to guide you.
The Plexus Groupe is providing filing, consulting and preparation services for IRS Forms 1094 and 1095. Contact us at 847.307.6100 (Chicago), 972-770-5010 (Dallas) or 405-241-9462 (Oklahoma City) to speak to a Plexus professional, or contact us via the Web.