ACA-Track™

Employer ACA Compliance & Reporting Solution

  • Contact Us
  • |
  • Request Demo
  • About
    • FAQ
  • Businesses & Organizations
  • School Districts
  • Partners
  • Services
  • Resources
    • Blog
    • Full-time Equivalent (FTE) Employee Calculator
    • Vendor Assessment

June 1, 2017 By ACA-Track™

IRS Audits of ACA Compliance Begin

Penalty Notifications Could Be in the Mail

Compliance matters! If you are among the non-compliant employers who failed to comply and file appropriately for the Affordable Care Act in 2015 or 2016, you may be seeing penalty notifications soon.IRS ACA Audit

May 31, 2017 was the target date for the IRS to deploy the ACA Compliance Validation System (ACV), which will be used to identify potentially noncompliant Applicable Large Employers and calculate the proposed Employer Shared Responsibility Payments.

If it is successful at identifying non-compliant employers and imposing penalty notifications beginning May 31, then the revenue generated could amount to $167 billion from 2016 to 2025, according to the Joint Committee on tax estimates.

IRS Fine Tunes Audit Processes

The validation system has been in the works for several years now. According to an April 7, 2017 report,  findings issued by the U.S. Treasury Department revealed the IRS has done a lot of things right in the development of this system. It confirmed the IRS  was working appropriately to ensure employers subject to the Affordable Care Act (ACA) Employer Shared Responsibility Provision were able to comply with reporting requirements.

Although the Treasury report findings also identified areas that needed improvement, the IRS was one step ahead of the audit by already having developed resolutions to most of the challenges.

While the Treasury review uncovered malfunctions in the processes resulting in inaccurate or incomplete data for use in identifying non-compliant employers, the IRS agreed and stated it had already initiated steps to correct these errors for the 2017 Filing Season.

The IRS also acknowledged there were numerous system errors in the first reporting year, but has already remedied them. The IRS responded to each of the challenges with reviews, testing, resolutions and implementation, some of which had already been started with the 2017 filing season.

Interesting for non-compliant employers is that the development and implementation of key systems needed to identify non-compliant employers subject to an Employer Shared Responsibility Payment were delayed, not initiated, or cancelled. The IRS accepted the finding, but stressed the systems were in progress and would be deployed by the end of May 2017.

So far, the IRS has done what it said it would do to fix the Employer Shared Responsibility challenges.

What does this mean to the non-compliant employer? Non-compliant employers should have an immediate plan to become compliant. By starting now, non-compliant employers may be able to minimize filing penalties. Starting to get compliant now could also prevent a full-scale IRS audit that would be costly in both time and money.

The full IRS report can be found at https://www.treasury.gov/tigta/auditreports/2017reports/201743027fr.pdf.

______________________________________________________________

Looking for an ACA reporting and compliance solution with responsive service and support? Contact PSST about  ACA-Track for a free, no-obligation demonstration today, 1.800.488.7395

Filed Under: ACA Compliance

Contact Us To Become A Partner

1.800.488.7395

 

Latest from the blog

  • Preparing for 2020 ACA Reporting Starts Now!
  • How an Individual Coverage HRA impacts reporting for the Affordable Care Act in 2020
  • Case Study: Fort Worth Independent School District
  • IRS Updates Filing Status for ACA Information Returns
  • IRS Extends Form 1095 Distribution Deadline for 2019 ACA Reporting
  • Request A Demo
  • Support
  • Contact
  • Terms & Conditions

Address

303 N Hurstbourne Pkwy, Ste 110
Louisville KY 40222

Encouraging Words for the Day

A heart at peace gives life to the body, but envy rots the bones.
Proverbs 14:30
A gentle answer turns away wrath, but harsh words stir up anger
Proverbs 15:1
A cheerful heart is good medicine, but a crushed spirit dries up the bones.
Proverbs 17:22
Copyright © 2023 ACA-Track, Inc

Information provided by PSST, LLC concerning the Affordable Care Act is not legal advice and should not be treated as such. If you have questions about how the Affordable Care Act will affect you as an employer, please consult legal counsel.

Privacy Policy | Terms & Conditions

Website Design by The Content Squad