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Report health insurance information Minimum Essential Coverage Information Reporting (MEC IR) Insurance providers are required to report health coverage information to us annually by March 31 or face a penalty. However, no penalty will apply if the return is filed on or before May 31.
To complete the California Mandate reporting, self-insured employers, regardless of their Applicable Large Employer (ALE) status, must transmit 1094/5-B and C forms to the California Franchise Tax Board (FTB) by March 31.
California Minimum Essential Coverage Information Reporting (MEC IR) essentially means that copies of the federal 1095-B/C and 1094-B/C forms must be submitted to the State of California (as well as to the IRS) so that the state is able to confirm health coverage for individuals.
Failure to file penalty For the 2023 tax year, the IRS ACA penalty for failing to file 1095-C forms is $290 per return if filed after August 1, 2023. The penalty amount increases to $580 if the employer intentionally disregards the filing responsibilities.
Penalties for Not Filing or Incorrectly Filing Forms 1094/1095-C. As of 2022, the penalty for failing to file an informational return is $280 per return, up to $3.426 million per business. Failure to provide a correct payee statement is also $280 per statement and can be up to $3.426 million per employer.