Many employers have struggled with their health care information reporting for the 2015 tax year. Those difficulties include confusing forms, tedious reporting processes, and technological setbacks. While penalties are perhaps the greatest concern for employers with regard to this relatively new reporting, the IRS has made the process a little less stressful.
While both the deadlines for paper filing for forms (May 31, 2016) and electronic filing (June 30, 2016) have now passed, the ACA Information Returns System (AIR) is still active per the IRS. This means, employers are able to still file their information returns via AIR as well as conduct their system testing. Further, if an information return was bounced back with errors, employers have the opportunity to submit via AIR within the 60-day grace period as to not be considered “late.”
If you are still late—whether filing through a paper return or electronically—submit your forms as soon as possible, regardless of whether or not you have a reasonable cause for delay. Penalties or not, reporting is required.