IRS Penalty 1094C-001-01 is assessed when employers submit Form 1094-C with an incorrect Employer Identification Number (EIN). This error can lead to misidentification and improper processing of employer health coverage information under the Affordable Care Act (ACA).
Implications of Incorrect EIN Submission
Submitting an incorrect EIN on Form 1094-C can result in:
- Delays in the processing of ACA compliance reports.
- Potential mismatch issues with IRS records, leading to further complications and inquiries.
How to Correct and Respond to Penalty 1094C-001-01
If your organization receives this penalty notice, you should:
- Verify the correct EIN from official documents and records.
- Amend the Form 1094-C with the correct EIN and resubmit it to the IRS promptly.
- Review internal processes to prevent similar errors in future filings.
Preventing Future EIN Errors
To avoid future errors related to incorrect EIN submissions:
- Double-check all EINs against company records before submitting any IRS forms.
- Use ACA-Track which can assist in validating and maintaining accurate employer identification data.
- Train personnel responsible for tax and ACA filings on the importance of accurate data entry.
For more information on how to handle IRS penalties and ensure compliance with ACA reporting requirements, visit Common 1094 Error Codes.
