The time when the IRS offers relief from financial penalties to employers that make errors on their group health insurance reporting forms has come to an end.
Starting this year, the IRS will no longer offer protection against reporting error penalties when "applicable large employers" (ALEs) file their Forms 1094-C and 1095-C and the employer has made a good-faith effort to comply. The change starting with the 2021 tax reporting year means that employers can face steep penalties for mistakes on their forms.
There are signs that the Internal Revenue Service is starting to step up its enforcement of the Affordable Care Act employer mandate.
During the past six months, there's been an uptick in the number of employers receiving initial notices stating they may be out of compliance with the requirement that they offer their workers coverage.