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New Law Increases Information Return and Payee Statement Penalties.

As employers prepare to comply with the information reporting requirements relating to minimum essential coverage (Code Section 6055) and employer-sponsored coverage (Code Section 6056) under the Affordable Care Act (the “ACA”), a new law increases the penalties for failing to file correct information returns and to provide payee statements. Among other changes to the penalty structure, the Trade Preferences Extension Act of 2015 increases the maximum penalty for failing to file a correct information return from $100 per return to $250 per return as well as the maximum annual penalty from $1.5 million to $3 million. The increased penalties are effective for filings due after December 31, 2015 and apply to all information returns and payee statements subject to Code Section 6721, including, but not limited to, the ACA Code Sections 6055 and 6056 information returns, Forms W-2, and Forms 1099-R.

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