IRS Penalty 1094C-005-01 is levied when Form 1094-C is submitted without the required authorized signature. This signature is a crucial component of the form, verifying the accuracy and authenticity of the information provided to the IRS under the provisions of the Affordable Care Act (ACA).
Significance of the Authorized Signature
The authorized signature on Form 1094-C:
- Confirms that the employer or an authorized representative has reviewed and approved the contents of the form.
- Serves as a declaration that the information is complete and correct to the best of the signer’s knowledge.
Consequences of Missing Signature
Failing to include an authorized signature on Form 1094-C can lead to:
- Rejection of the form by the IRS, which may delay processing and affect compliance evaluations.
- Potential penalties for failing to comply with ACA reporting requirements.
Addressing Penalty 1094C-005-01
To address this issue if you receive a penalty notice:
- Resubmit Form 1094-C with the appropriate authorized signature as soon as possible.
- Review your submission process to ensure all future forms are correctly signed before filing.
Preventing Signature Omissions
To prevent future omissions of the authorized signature on Form 1094-C:
- Establish a checklist that includes verifying the signature before submitting any ACA-related forms.
- Train all personnel involved in the ACA reporting process on the importance of this requirement.
- Consider utilizing ACA compliance software like ACA-Track that features built-in checks to ensure all necessary form elements, including signatures, are complete before submission.
For additional assistance with ACA compliance and avoiding penalties, visit Common 1094 Error Codes.
