The Affordable Care Act (ACA) - potential tax (penalty) liabilities

Under the Affordable Care Act (ACA), beginning in 2015, businesses may incur additional taxes or penalties for noncompliance in filing the information returns. While there are relief provisions for 2015, these likely won’t extend into 2016.

For information returns due in 2017 (for 2016 coverage) and later for coverage offered after 2015, penalties may be assessed on ALEs that fail to timely file information returns and fail to include the correct or all of the required information on such returns. If reasonable cause exists, these penalties may be waived. Generally, penalties will not be assessed on information returns due in 2016 for coverage offered in 2015. The IRS will consider granting relief if the ALE can prove they made a good faith effort to comply with the new reporting requirements.

For more information on this topic, or to learn how Baker Tilly tax specialists can help, contact our team.


The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely.  The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.