IRS Code 1094C-052-01 is issued when an employer reports the wrong tax year on Form 1094-C. This type of error can lead to miscommunication and potential compliance issues with the Affordable Care Act (ACA).
Impact of Reporting the Wrong Tax Year
Incorrectly reporting the tax year on Form 1094-C can result in the IRS being unable to accurately assess an employer’s compliance with ACA requirements, potentially leading to unnecessary inquiries or penalties.
Steps to Correct the Tax Year Error
- Review the Form 1094-C that was submitted to identify and confirm the error in the reported tax year.
- Prepare an amended Form 1094-C with the correct tax year clearly indicated.
- Submit the corrected form to the IRS as soon as possible to ensure your compliance records are accurate.
Preventing Future Tax Year Errors
To avoid similar errors in future filings:
- Implement a detailed review process for all ACA compliance documents prior to submission, ensuring that all information, including the tax year, is correct.
- Train staff responsible for preparing ACA forms on the importance of accurate data entry, especially for critical information like the tax year.
- Use ACA compliance software that automatically checks for common errors such as incorrect tax year entries.
Getting Additional Assistance
If you need help correcting a Form 1094-C or understanding other ACA reporting requirements, visit ACA Track’s FAQ page or consult with an ACA compliance expert.
