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SOURCE Convey Compliance Systems, Inc.
MINNEAPOLIS, Aug. 19, 2014 /PRNewswire/ -- On July 24, the IRS released draft forms for tax information reporting under the Affordable Care Act (ACA). The new forms include recipient forms 1095-A, B and C and transmittal forms 1094-B and C. These forms are meant to verify that organizations are meeting their ACA obligations of offering minimal essential coverage to their employees as well as provide proof of coverage for employees and dependents. The IRS also released new draft versions of 1040 and 1040EZ which now include a section for individual ACA reporting meant to confirm that individuals are receiving minimal essential coverage.
Although ACA reporting for large employers and insurers is not required this year, organizations should be aware that individuals are required to report this year on the new 1040 or 1040EZ. Delaying the implementation of an ACA reporting strategy until next year could impact their employees and members, who may face penalties for failing to report accurately. Convey recommends that organizations utilize 2014 as an opportunity to implement a tax reporting pilot season for ACA, not only to preempt any reporting hiccups, but also mitigate any confusion for employees and members.
"Most organizations were relieved to learn that their reporting requirements do not go into full effect until next year," said Raymond Grove, product marketing manager at Convey Compliance. "However, these organizations are not taking into account that the ACA legislation requires individuals (employees) to provide proof of coverage in 2014 as shown on the new draft 1040 forms. It's very likely employees and members will turn to their employers or insurers with many questions and requests for assistance to complete this section on their 1040s, and this is something organizations should prepare for."
For nearly thirty years, Convey has provided technology and services to improve compliance and reduce costs related to tax information reporting. In June of 2014, Convey merged with Taxware, a global provider of sales, use and value-added tax (VAT) software. Together the two companies create a comprehensive portfolio of technology products and services designed to simplify tax compliance and mitigate risk.
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