E-filing ACA Information Returns is NOT a one and done process. If the IRS finds ERRORS they need to be corrected. Only then is the filing complete.
ACA e-filing is a new and complex procedure with several deadlines and strict criteria for correct submission. Incorrect submission and failure to rectify corrections can result in steep penalties.
More likely than not, your e-filing will be “accepted with errors”. The most common ACA e-filing errors is “TIN Validation Error AIRTN500” which happens when the employee last name and SSN do not match what the IRS has on file. We will be outlining why these errors can occur in a separate blog post, but in the meantime the IRS resources that cover this topic are shared at the end of this post.
Corrections are important!
There are significant penalties if proper correction guidelines are not met. The IRS operates under a “good faith effort” context, meaning they recognize when you review and attempt to correct the errors within a reasonable timeframe. Error correction is part of the good faith effort to file accurate and complete information returns. However, if the corrections are not fixed, there are potential penalties. In upcoming posts, we will share with you the entire process; how to fix errors, what the errors are, when you need to correct them by, and why you need to file correctly.
IRS resources for the ACA Information Returns Corrections Process:
IRS guidance is evolving in the area of corrections, including a new approach a 45 minute video! Many commentators have also addressed the issue of compliance. One particular recent article stand out for its clarity. Nicole M. Elliott
ACA Corrections Instructional Video: IRS video Corrections Process
Publication 1586 Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINS: Pub 1586.pdf
ACA Webinar June 2016 Presentation ACA AIR Info: IRS Webinar