On October 13, 2017, the IRS stated it will not accept electronically filed tax returns for tax year 2017 filed in 2018 where the taxpayer does not address the health coverage requirements of the Affordable Care Act (ACA). In addition, returns filed on paper that do not address the health coverage requirements may be suspended pending the receipt of additional information. Failure to provide this information can delay taxpayer refunds.
Taxpayers must indicate whether they and everyone on their return had coverage, qualified for an exemption from the coverage requirement or are making an individual shared responsibility payment.
The IRS is increasing its diligence in enforcing the ACA reporting requirements. The 2018 filing season will be the first time the IRS will not accept tax returns that omit this information. Therefore it is imperative that employers that meet Applicable Large Employer status perform the ACA required reporting. Not performing the reporting not only opens up the company to significant fines, it also can lead to hardships for their employees.