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Navigating the Potential Penalties of Incorrect 1095-B Filing

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The IRS Form 1095-B plays a pivotal role, serving as a means to convey information regarding individuals with minimum essential coverage to the IRS and the taxpayers. It is imperative for employers to submit this form accurately and promptly to circumvent any potential fines. This article will delve into the complexities associated with the submission of Form 1095-B, leveraging guidance from the official IRS instructions for the form.

Deciphering Form 1095-B 

The purpose of Form 1095-B is to relay specific details to the IRS and taxpayers about individuals under minimum essential coverage, encompassing government-sponsored initiatives, plans sponsored by eligible employers, plans available in the individual market, and other specified types of coverage. This form is vital for ascertaining eligibility for certain perks, such as the premium tax credit.

Filing Obligations 

All entities that extend minimum essential coverage to an individual within a calendar year are mandated to submit an information return to report the coverage. This obligation applies to employers, insurance providers, and government schemes. Notably, employers with a workforce of 50 or more full-time staff are usually bound by the employer shared responsibility provisions and must submit a Form 1095-C filing. 

Consequences of Filing Errors 

Entities who fail to accurately and punctually file Form 1095-B may incur penalties. The severity of these penalties can fluctuate based on the company size and the specific nature of the filing discrepancy. It is of paramount importance to ensure full compliance with the filing prerequisites to sidestep these penalties.

Entities responsible for providing minimum essential coverage must comply with the IRS’s reporting mandates or risk incurring substantial fines. For the 2023 tax year:

  • Incorrect Information Returns: A $310 penalty per return, capped annually at $3,783,000.
  • Incorrect Payee Statements: A $310 penalty per statement, with a $3,783,000 annual cap.
  • Intentional Disregard: Penalties escalate significantly, with no maximum limitations.

These penalties emphasize the importance of accurate and timely reporting, underscoring the IRS’s commitment to compliance. Entities are encouraged to diligently review and submit all required information to avoid these substantial financial repercussions.

Key Filing Deadlines

The return and transmittal form must generally be filed with the IRS on or before February 28 if filing on paper, or March 31 if filing electronically, of the year following the calendar year of coverage. For forms filed in 2024 reporting coverage provided in calendar year 2023, the deadline is February 28, 2024 if submitting a paper filing, or April 1, 2024, if filing electronically.

Please note: Filers that must file more than 10 forms in aggregate must submit an electronic filing. These forms must be taken into consideration for this sum: Form 1042-S, the Form 1094 series, Form 1095-B, Form 1095-C, Form 1097-BTC, Form 1098, Form 1098-C, Form 1098-E, Form 1098-Q, Form 1098-T, the Form 1099 series, Form 3921, Form 3922, the Form 5498 series, Form 8027, and Form W-2G.

How to Ensure Accurate Filing

Employers can take several steps to ensure accurate filing of Form 1095-B:

  1. Understand the Requirements: Ensure that you fully understand the filing requirements and the information that needs to be reported.
  2. Maintain Accurate Records: Keep accurate and up-to-date records of all individuals covered by minimum essential coverage.
  3. File On Time: Ensure that you file the form on time to avoid potential penalties.
  4. Seek Professional Advice: Consider seeking advice from a tax professional or legal advisor to ensure compliance.


Navigating the potential penalties of incorrect Form 1095-B filing is crucial for employers. By understanding the filing requirements, maintaining accurate records, and seeking professional advice, employers can ensure compliance and avoid potential penalties. Remember, the accuracy and timeliness of your filing are key to maintaining compliance and supporting your employees’ needs.

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