IRS Code 1094C-008-02 addresses discrepancies in the number of Form 1095-C reported on Form 1094-C. This error can complicate compliance with the Affordable Care Act (ACA) by misrepresenting the actual coverage offered to employees.
Consequences of Reporting Incorrect 1095-C Counts
Incorrect counts of Form 1095-C can lead to several issues:
- Implications for employer mandate compliance and potential penalties.
- Miscommunication to the IRS regarding the actual coverage provided to employees.
- Potential audits and inquiries from the IRS.
Common Causes of Discrepancies
Discrepancies in the count of Form 1095-C often stem from:
- Errors in data entry or form preparation.
- Misunderstandings about which employees need a Form 1095-C.
- Technical issues with electronic submission systems.
Steps to Correct the Reported 1095-C Count
To rectify an incorrect 1095-C count, employers should:
- Review their records to determine the accurate number of 1095-C forms that should have been reported.
- Prepare and submit an amended Form 1094-C with the correct count of Form 1095-C.
- Ensure that internal processes and checks are in place to prevent future discrepancies.
Tools and Resources for Ensuring Accuracy
Employers can use tools like ACA-Track to manage their ACA reporting and ensure the accuracy of forms submitted to the IRS. For additional guidance:
- Visit the Official IRS website for detailed instructions on ACA reporting requirements.
- Refer to the Common 1094-C error codes page to identify and correct common errors in reporting.
