July 5, 2016

The IRS "QuickAlerts" email list serve notified anxious employers June 30, 2016 that the ACA Information Returns (AIR) system will continue to accept returns filed after June 30, 2016. In some cases, penalties associated with the submission of the late ACA information returns may be avoided if the employer can show it made legitimate efforts to register with the AIR system and file its required reporting forms.

Applicable large employers had until 11 p.m. CST June 30, 2016 to electronically file ACA information returns with the IRS. However, the AIR system and its required system testing will remain available to accept filings after this deadline.

The AIR system has been periodically unavailable in recent months due to maintenance. Employers whose transmissions or submissions were rejected by the AIR system have 60 days from the date of rejection to submit a replacement in order to have the initial, rejected, submission treated as timely filed. The IRS will also allow employers who submitted and received "Accepted with Errors" messages to continue to submit corrections after June 30, 2016.

In the Quick Alert, the IRS reiterated its earlier statements that "filers of Forms 1094-B, 1095-B, 1094-C and 1095-C that miss the June 30, 2016 due date will not generally be assessed late filing penalties under section 6721 if the reporting entity has 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."

This is intended to be a brief overview of the recent announcement regarding ACA filing through the AIR system and does not address any other application of the ACA.  If you have any questions about the application of the ACA, including its reporting requirements, please contact us.

Ahlers & Cooney's Employment & Labor and Education Practice Groups


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Beenken, Katherine


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