Are you thinking doing your own eFiling to the IRS to meet the mandated ACA Compliance regulations? The first step is to apply for a Transmitter Control Code (TCC). Assuming you can supply data in ASCII format, here are some insights from the IRS about the application process required to request for a TCC number:
You need to submit IRS Form 4419 to request authorization to electronically file. To start the application, supply all the required information. Transmitters who file for multiple payers may submit one application and use the assigned Transmitter Control Code (TCC) for all payers. If your application is approved, a five-character alphanumeric TCC will be assigned to your organization. Form 4419 can be completed online at https://fire.irs.gov.
In order to file electronically through the FIRE System, you must have software or a service provider that will create the file in the standard ASCII format. A scanned or PDF document will not be accepted.
Forms W-2: Do not use Form 4419 to request authorization to electronically file Forms W-2. Form W-2 information is only sent to the Social Security Administration (SSA). Contact SSA if you have any questions concerning the electronic filing of Forms W-2 at 1-800-772-6270.
If you apply for a TTC and don’t use it for two years, the IRS will delete your code. Once deleted from their database, you will need to re-apply and submit another Form 4419.
Due Date: In order to ensure timely filing, the agency asks filers to submit Form 4419 at least 45 days before the due date of the return. When completing this form the IRS asks you to please print or type clearly.
Block 1 - Enter the legal name associated with the EIN in Block 2 and the complete address of the organization that will submit electronic files (transmitter and/or payer).
Block 2 - Enter the Employer Identification Number (EIN), Qualified Intermediary Number (QI-EIN), Withholding Partnership Number (WP-EIN), or Withholding Trust Number (WT-EIN) of the organization transmitting the electronic files. Social Security Numbers (SSN) are not permitted.
Block 3 - Enter the name, title, email address and telephone number (with area code) of the person to contact about this application. This should be a person who is knowledgeable about the electronic filing of your information returns.
Block 4 - Check the appropriate box to indicate if you are requesting a Transmitter Control Code (TCC) solely for the electronic filing of Form 8809, Application for Extension of Time To File Information Returns.
Block 5 - Check the appropriate box to indicate if you are a foreign transmitter who does not have a nine-digit Taxpayer Identification Number.
Block 6 - Enter the tax year that you wish to begin filing electronically.
Block 7 - Only check the box next to the returns you will electronically file with the IRS. A separate TCC will be assigned for each box checked in Block 7.
Block 8 – Affidavit. This application must be completed and submitted by: (a) the owner, if the applicant is a sole proprietorship, (b) the president, vice president, or other principal officer, if the applicant is a corporation, (c) a responsible and duly authorized member or officer having knowledge of its affairs, if the applicant is a partnership, government entity, or other unincorporated organization, or (d) the fiduciary, if the applicant is a trust or an estate.
Check the box to confirm that you have read the affidavit and are authorized to sign on behalf of the transmitter and/or payer.
Block 9 - The form must be signed and dated by an official of the company or organization requesting authorization to file electronically.
If you need to revise Form 4419 information: Check the box located at the top of Form 4419 and provide the current TCC assigned to the business. A revised Form 4419 can only be submitted if you are updating information for a previously submitted and approved Form 4419 for the following information:
• Block 1 - Legal name and address
• Block 3 - Person to contact or contact information
Changes to the blocks listed below require you to submit a new Form 4419. A new TCC will be assigned to the transmitter/payer. (Do not check the Revised box.)
• Block 2 - EIN
• Block 7 - Type of return to be reported
Note: A revised Form 4419 can only be submitted on paper.
To help you with your electronic filing the IRS makes the following publications available (based on the type of filings you plan on conducting):
• Publication 1220, Specifications for Electronically Filing Form 1097, 1098, 1099, 3921, 3922, 5498, and W-2G
• Publication 1187, Specifications for Electronically Filing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding
• Publication 1239, Specifications for Electronically Filing Form 8027, Employers Annual Information Return of Tip Income and Allocated Tips
• Publication 4810, Specifications for Electronically Filing Form 8955-SSA, Annual Registration Statement Identifying Separated Participants and Deferred Vested Benefits Paperwork Mail or Fax Form 4419 to the IRS.
If you’re missing information, have a type-o or enter the wrong data, you application will be denied. Please return to Box 1 and repeat the process.
No those are just the steps to get a TCC set up. Then you need to also make sure you have a plan in place for these components:
- Eligibility and Affordability Determination (Monthly Measurement Method & Look-Back Method)
- Part Time/Variable Hour Tracking
- Personalized SBC Templates and Distribution Discovery Session
- Penalty Avoidance and Assessment
- HIPAA and HITECH Compliant (depending on your industry)
- Data Security
- Payroll/HRIS/TPA System Compatibility
- Dynamic Data Consolidation
- Quality Control Check
- Form 1095-B/C Code Calculation
- Form 1095-B/C and 1094-B/C Creation Personalized messages on Form 1095-B/C
- USPS First Class Distribution of all Form 1095-B/Cs
- Electronic PDF Distribution of all Form 1095-B/C
- eFiling your 1095-B/Cs and 1094-B/Cs through the IRSAIR Program
- IRS-generated Error Correction Remediation
- Re-transmittal of Corrected Forms through IRSAIR
- Responding to Form Resubmission Requests
- Marketplace Appeals Support
All these elements must be completed accurately and on deadline. Non-compliance can lead to fines of up to $500/employee up to $6 million. The process is complex, cumbersome and daunting. The easy and affordable way to avoid all the angst is to hire an expert firm to manage your compliance and reporting function.
Learn more about what BenefitScape has to offer and connect with an ACC Compliance specialist here.