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The Affordable Care Act (ACA) filing season for the 2024 tax year is upon us. As businesses and insurers gear up to meet their reporting obligations, understanding the latest requirements, penalties, and deadlines is crucial. Whether you’re filing Form 1095-C or Form 1095-B, staying compliant is essential to avoid significant penalties.
Who Needs to File ACA Forms?
Applicable Large Employers (ALEs): Employers with 50 or more full-time employees (including full-time equivalents) are required to file Form 1095-C for each full-time employee, detailing the health coverage offered.
Health Insurance Providers and Self-Insured Employers: Entities providing minimum essential coverage (MEC) must file Form 1095-B to report individuals covered under their plans.
Key IRS Deadlines for the 2024 Tax Year
Meeting ACA filing deadlines is crucial to avoid penalties and maintain compliance. Employers and insurers must adhere to the following IRS deadlines:
| Filing Requirement | Deadline |
| Paper Filing with IRS | February 28, 2025 |
| Recipient Copy Distribution | March 3, 2025 |
| Electronic Filing with IRS | March 31, 2025 |
Note: If you are filing 10 or more forms, the IRS mandates electronic filing.
Updates to ACA Forms for the 2024 Tax Year
The IRS has released the final versions of Forms 1095-B and 1095-C for the 2024 tax year. Notably:
- No Significant Changes: The forms remain largely unchanged from previous years.
- Affordability Percentage Adjustment: The ACA affordability percentage has been reduced from 9.12% to 8.39% for the 2024 tax year.
- Penalty Rate Increases: Under Section 4980H:
- Section 4980H(a): Penalty rate is $2,970 for the 2024 tax year.
- Section 4980H(b): Penalty rate is $4,460 for the 2024 tax year.
Penalties for ACA Non-Compliance
Failing to meet ACA filing requirements can result in significant IRS penalties, with amounts varying based on business size and the length of the delay. Penalties can range from $60 to $330 per return, with maximum penalties reaching millions of dollars. For cases of intentional disregard, penalties increase to $660 per return with no maximum limit.
For a full breakdown of ACA penalties, visit TaxBandits’ ACA Penalties Guide.
How TaxBandits Simplifies ACA Reporting
Navigating ACA reporting can be complex, but TaxBandits offers a comprehensive solution to streamline the process:
- IRS-Authorized E-Filing: Securely file forms directly with the IRS.
- Bulk Upload & Data Validation: Easily upload large filing data. Ensure accuracy with automatic error checks.
- Recipient Copy Distribution: Options for postal mailing or secure online access.
- State Filing Support: Comply with state-specific ACA reporting requirements.
- Built-In Corrections: Quickly address and resubmit any rejected forms.
Stay Compliant—Start Your ACA Filing Today!
Avoid the stress of last-minute filing and potential penalties. Get started with TaxBandits to ensure accurate and timely ACA reporting for the 2024 tax year.
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