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.