News

The IRS recently updated their indexing adjustments for certain provisions under IRC Section 36B in Revenue Procedure 2020-36. There are two important updates for your review.

Here is a guide to determining your organization’s readiness and a few practical tips if your organization is to go forward and attempt this NJ efiling. Many employers have voiced concern that these NJ filing requirements are difficult for them to comply. In particular, smaller employers may not have the capacity for electronic filing of information

As deadlines approach, here is a little help from your friends at BenefitScape to help with NJ mandate efiling. Take a look at this Outline of a project plan to enable e-filing to New Jersey starting with the IRS AIR XML file.

Currently, Massachusetts, California, the District of Columbia, New Jersey, Rhode Island, and Vermont have passed state individual mandates. With each state passing its own individual mandate, it makes it difficult for companies to keep up with all the different regulations and reporting requirements. BenefitScape will efile all data required by the state.

As a provider of millions of ACA 1095 Forms, we are often asked “if the employee must have a copy of this ACA Form 1095 to file their federal income tax return?”
The IRS has finally answered the question, NO. The Form 1095 is not needed to file Form 1040. In fact there is no longer even a place on the 1040 to provde any information on the individual mandate. THE BOX IS GONE!

Missed a deadline? Don’t compound the issue and risk a penalty, print and file forms as soon as possible and email in order to be able to exhibit “Good Faith” and explain your reason for not meeting the deadlines.

The IRS has,provided little breathing room for employers required to prepare ACA Forms. In Notice 2019-63, the IRS provided additional reporting relief for employers for the 2019 calendar year.
Note: eFiling to IRS AIR was not extended, deadline is March 31, 2020

In Brief: BenefitScape Cloud can take your Federal ACA filing and eFile it to New Jersey. Its that simple!
No additional effort on your behalf, its that easy. The result 100% NJ Compliance with no additional work!
New Jersey employers and out-of-state employers that withhold and remit New Jersey Gross Income Tax for New Jersey residents must submit returns to the state and distribute statements to employees in early 2020.

The IRS has begun issuing Notice 972CG, a penalty notice regarding late filings of Forms 1094 and 1095 for Tax Year 2017. The notices also include penalties for unresolved TIN validation errors and for not filing returns electronically if you filed more than 250 forms on paper.

The IRS recently began issuing Penalty Notices for TY2017. Employers have begun receiving Letter 5699 ‘Failure To File’ Notices.

Form 1095 and W2_Box12 are both tax filings and as such should be treated with the diligence any accounting-based tax filing requires. If the results don’t match on both forms… you essentially are signaling to the IRS that there may be a discrepancy in the filing!

IRS e-filing to the new Affordable Care Act Information Returns system (AIR) requires constant technological improvement to keep up with the requirements the IRS has imposed on applicable large employers (ALE’s). Most “tax filers” have not improved their process to the point where they can reduce errors and potential penalties for those using their filing systems. Essentially they can file arithmetic reports such as W-2 and 1099 but do not possess the skills and software to manage ACA filings.