IRS has issued a helpful video and transcript on ACA information return corrections and errors—a big issue for 2016 employer reporting.

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Affordable Care Act Information Returns Corrections Process

Sep 21, 2016

In this presentation from April 2016, Tim Berger and Anna Falkenstein discuss how to handle ACA Information Returns that may need correcting.

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The Affordable Care Act requires insurers, other coverage providers, and some employers to file information returns with the IRS and furnish a copy to the recipient. If you are an issuer or coverage provider, you´ll generally report using form 1095-B or form 1095-C. Applicable large employers use form 1095-C.

In this presentation, Berger and Falkenstein cover information reporting requirements, what the IRS means by a corrected return, how errors are identified, what errors require filing a correction and examples of how to correct those errors, the timing for making corrections, the electronic correction process, and penalties for ACA Information Returns. Additionally, they address errors on forms 1095-B, 1094-C, and 1095-C that should be corrected and when you should make corrections. The presentation notably does not discuss correcting errors on form 1095-A, which taxpayers use when claiming the premium tax credit on their income tax return. In addition to the material provided during the presentation,  a page at the end presents links to resources, including relevant legal guidance to review after this presentation.

Tim Berger a tax law specialist with the tax exempt and government entities division of the IRS. Anna Falkenstein a senior stakeholder liaison with the small business/self-employed division.

For the latest information about tax provisions of the Affordable Care Act, visit IRS.gov/aca.