Penalties Increase For Failure To Report to IRSJuly 21, 2015
The Trade Preferences Extension Act of 2015 was passed by Congress and signed into law by the President on June 29, 2015. The Act included an amendment to the Internal Revenue Code to increase the penalty for failure to file information returns to the IRS. The penalty has been increased from $100 to $250 per return and the maximum limit increased from $1.5 million to $3 million per calendar year. The penalty applies to all information returns filed with the IRS, such as the new ACA Form 1095-C, Form W-2, and Form 1099 series (including 1099-R, 1099-MISC, etc.). The increased penalty amount takes effect for required returns due after December 31, 2015.
As a reminder, if your organization had 50 or more full-time equivalent employees in 2014, it is subject to the new ACA reporting requirements starting in 2015. Please contact your Keller account team for assistance with ACA reporting.