If you e-file your ACA forms to IRS and later realize that you included an additional record by mistake, there is a way to fix it. Although, the IRS doesn’t have a straightforward way to void a 1095-C once it’s been filed, it can be corrected.
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 Instructions and other publications make 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 direct process to void a 1095-c 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 for electronically filed 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:
- 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”
- Line 17 should be blank.
- Uncheck the “Covered Individual” checkbox
- Remove all covered individuals
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.
If you’d like to learn more about Form 1095-C, check out our Understanding Form 1095-C downloadable PDF Guide below:
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 2023 tax year, the fine is $310 per incorrect form, not to exceed $3,783,000.
How do I make a correction?
If your filing has errors or if you find that you erroneously filed a form, you can easily make corrections to your Forms 1095-C.
- If you submitted your original filing electronically, then you should edit your filing accordingly with the original vendor.
- If you submitted your original filing via mail, then you should complete a new form and include the updated information.
- Once this has been completed, simply check the “Corrected” box at the top of the form. Always include a new transmittal Form 1094-C when mailing in corrections to the IRS.
Before you can consider your correction complete an updated copy of the form must be provided to the recipient as well. This ensures that all parties have updated information.
Will there be a way to void e-filed forms in the future?
The IRS has not announced a formal ‘Void’ process for the 2023 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.
Keeping up with your compliance efforts will help you avoid filing penalties for ACA forms. This is incredibly important now more than ever, as fine amounts and tax enforcement are increasing.
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.