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The Affordable Care Act (ACA) mandates that certain employers report health plan coverage details to the IRS. Originally, electronic filing was required for entities filing 250 or more statements. As of February 23, 2023, this threshold has been reduced to 10, making electronic reporting mandatory for most entities.
Previously, entities filing 250+ statements under Sections 6055 or 6056 had to file electronically. Now, employers filing 10+ returns annually must do so electronically, considering all information returns. This includes fewer than 10 Forms 1094/1095 if other returns like W-2s and 1099s are filed. The ACA Information Returns (AIR) Program is used for electronic filing, with IRS guidance available, though it's mainly for developers.
The AIR Program is primarily used by software developers, transmitters, and issuers for ACA information returns. Typically, issuers and employers rely on third-party vendors to file electronically with the IRS, so they don't use the AIR Program directly.
The following steps must be completed by entities that submit electronic returns through the AIR program.
Additional details and resources are available on the IRS’ AIR Program main page.
To request a hardship waiver from electronic filing, submit Form 8508 to the IRS. Forms should be filed at least 45 days before the return due date. The first waiver request is automatically approved, but subsequent requests require justification, such as financial hardship or disaster impact. Waivers are valid for one tax year, and approved waivers should be kept for records. Without a waiver, failing to file electronically may incur penalties up to $330 per return. However, up to 10 paper returns can be filed without penalty.
Reporting entities can request an automatic 30-day filing extension by submitting Form 8809 to the IRS by the due date. No signature or explanation is needed for the extension. Form 8809 may be submitted on paper or electronically via the FIRE System.
Employers subject to ACA reporting rules should explore electronic filing options to meet the March 31, 2025, deadline. They may want to consider partnering with a third-party vendor or consult the IRS’ ACA Information Returns (AIR) Program for guidance. For electronic filing issues, contact the AIR Help Desk at 1-866-937-4130. Download the bulletin for more details.