IRS Penalty 1094C-002-01 is imposed on employers who fail to file Form 1094-C by the prescribed deadline. Timely filing of this form is crucial as it accompanies Form 1095-C, providing the IRS with essential information regarding health coverage offered to employees under the Affordable Care Act (ACA).
Consequences of Late Filing
Failure to file Form 1094-C on time can lead to:
- Monetary penalties increasing for each day the filing is delayed beyond the deadline.
- Complications in the assessment of ACA compliance which may affect overall evaluations of employer responsibilities.
Responding to Penalty 1094C-002-01
If you receive a notice for late filing of Form 1094-C, you should:
- File the required Form 1094-C immediately to mitigate additional penalties.
- Contact the IRS to discuss potential abatement or reduction of penalties if there were reasonable causes for the delay.
- Review and strengthen your internal processes to ensure timely compliance in the future.
Preventing Late Filings
To prevent future instances of late filing:
- Establish internal reminders and deadlines ahead of the IRS schedule to ensure all forms are prepared and reviewed on time.
- Implement ACA compliance software like ACA-Track that features automated deadline tracking and alerts.
- Regularly update and train staff on ACA reporting requirements and timelines.
For more information on navigating ACA compliance and penalties, visit Common 1094 Error Codes.
