IRS Code 1094C-014 deals with inconsistencies found in the health coverage information reported on Form 1094-C. This code highlights discrepancies that can impact an employer’s compliance status under the Affordable Care Act (ACA).
Impact of Inconsistent Coverage Reporting
Inconsistent reporting of coverage information can lead to significant issues, including:
- Misinterpretation of compliance with employer mandate provisions.
- Possible penalties due to perceived non-compliance.
- Increased likelihood of audits and reviews by the IRS.
Common Causes of Reporting Inconsistencies
Reporting inconsistencies typically arise from:
- Errors in data entry or transfer between payroll and reporting systems.
- Lack of coordination between different departments responsible for ACA reporting.
- Changes in employee coverage that are not timely updated in the reporting forms.
Strategies for Addressing and Correcting Inconsistencies
To address and correct inconsistencies identified by Code 1094C-014, employers should:
- Conduct thorough reviews of all reported coverage information to ensure accuracy.
- Implement robust data verification processes to catch errors before submission.
- Amend any incorrect information on Form 1094-C and resubmit the corrected form to the IRS.
Tools and Resources for Compliance
Employers can enhance their compliance efforts using tools like ACA-Track, which help manage and verify the accuracy of ACA reporting. For further guidance:
- Consult the Official IRS website for detailed information on ACA reporting requirements.
- Check out the Common 1094-C error codes page to understand more about addressing reporting inconsistencies.
