So you’ve e-filed your 1095-Cs only to realize that you need to delete an employee’s data that was included by mistake. Unlike paper forms, there isn’t a straightforward way to void a 1095-C when you have e-filed.
So this raises the question: Is there a way to void a 1095-C after it has been e-filed?
The Official Guidance (or Lack Thereof)
The IRS AIR Submission Composition and Reference Guide makes no mention of the void process, and although the paper forms have a simple ‘Void” check box, the e-file specification does not provide a void process via XML or other high-level processes.
How to Void a 1095-C After E-filing
The IRS has told us that while they do not have a straight forward void process similar to checking ‘Void’ on the paper forms, they do have a work around that acts as a void for e-filers.
To void out your 1095-C, please complete the following steps for the affected forms:
Note: This procedure should only be used for forms that have been e-filed and need to be voided out. Forms that have not been e-filed can simply be removed prior to e-filing.
- Line 14 needs to show Code “1H (No Offer of coverage) in “All 12 Months”
- Line 15 must be blank since there was no ‘Offer of Coverage’
- Line 16 needs to show “2A (Employee not employed during the month)” in “All 12 Months”
- Uncheck the “Covered Individual” checkbox
- Remove all covered individuals
What happens if I void a 1095-C using this process that has a TIN validation error?
The IRS has advised us that their system will consider forms with a TIN error that are then voided (using the process above) as a voided form. The IRS system will still report a TIN validation error after voiding.
What happens if I do not make the necessary corrections?
The IRS could issue a penalty for incorrectly filed 1095-C forms. For the 2015 tax year, the fine is $250 per incorrect form not to exceed $3 million. If you correct the form within 30 days, the IRS could reduce the fines to $50 per form, not to exceed $500,000. Proposed fines for the 2016 tax year could increase to $260 per form not to exceed $3,193,000.
If you are a BoomTax customer, you can make these corrections from our easy to use interface and file as many corrections as needed for free.
Will there be a way to void e-filed forms in the future?
The IRS has not announced a formal ‘Void’ process for the 2016 tax year for e-filers. We will continue to monitor ACA-related IRS channels and update this process if one is provided in the future.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.