IRS Notice AIRBR837 is sent to employers who have reported the wrong tax year on Form 1094-C. This error can create significant confusion and delay in the processing of ACA compliance documents.
Significance of Correct Tax Year Reporting
Correctly stating the tax year on Form 1094-C is critical because:
- It ensures that employee coverage data is matched with the correct reporting period.
- Mistakes can lead to inaccurate tax filings and potential compliance issues with the IRS.
Consequences of Incorrect Tax Year Reporting
Submitting Form 1094-C with the wrong tax year can lead to:
- Rejections or delays in form processing which may affect compliance statuses and penalties.
- Possible audits or additional scrutiny from the IRS to verify other aspects of the filing.
Corrective Actions for Notice AIRBR837
If you receive Notice AIRBR837, you should:
- Review the form to identify and correct the tax year error.
- Resubmit the corrected Form 1094-C to the IRS promptly.
- Review internal processes to prevent similar mistakes in future submissions.
Preventing Future Tax Year Errors
To prevent similar errors in future filings:
- Double-check and confirm the tax year on all ACA-related documents before submission.
- Use tools like ACA-Track, which can help ensure accuracy in your ACA reporting by automatically populating forms with the correct tax year.
- Train staff involved in ACA reporting on the importance of accurate data entry and verification.
For additional support and resources on ACA compliance, please visit ACA-Track FAQs.
