Understanding Corrected Forms 1094-C and 1095-C
As a Benefits Administrator, you may have to generate and submit corrected Forms 1094-C and 1095-C. If the previously filed and accepted returns contains any errors reported by the IRS, or if there are any erroneous information that you or your employees discover in the submitted and accepted returns.
Understanding Form 1095-C Corrections
Before a Form 1095-C has been submitted and accepted by the IRS, the IRS considers the 1095-C original. If you need to make a change to the Form 1095-C information, you do so on the original records, either by rerunning the build processes or by manually adjusting the records. If the Form 1095-C has been printed and the paper form distributed to the employee, you reprint the original record. You need to write the word Corrected on the paper Form 1095-C.
Once the Form 1095-C has been submitted and accepted by the IRS, the IRS now retains a record of the original Form 1095-C. Now, if you need to make a change to the Form 1095-C information, do the following:
You must enter a Correction AIR ID that references the original AIR ID.
When making changes to the Form 1095-C information, either by the batch build process or manually, the system marks the original 1095-C as having been corrected and creates new records with the updated information. The new records are associated with the Correction AIR ID and display a Correction Number greater than zero.
You need to print the Correction AIR ID Form 1095-Cs and distribute the updated paper Form 1095-Cs to employees. You must manually mark these with a value X in the CORRECTED box.
You rerun the 1094-C build process to create new 1094-C records where needed.
You submit the Correction AIR ID for a transmission build in the same manner as the original AIR ID. The system automatically makes the necessary adjustments to show the transmission as a Transmission Type C (Corrected).
Corrections to Form 1095-C records which were originally submitted with a non-authoritative transmittal Form 1094-C are submitted with a new non-authoritative transmittal Form 1094-C. Corrections to Form 1095-C records which were originally submitted with the authoritative transmittal Form 1094-C are submitted with a new original authoritative transmittal Form 1094-C. In this instance, the AIR ID Transmission Type is C (Correction), but the 1094-C is still the original.
Understanding Authoritative Transmittal 1094-C Corrections
Until an authoritative transmittal Form 1094-C has been submitted and accepted by the IRS, the IRS considers the authoritative transmittal 1094-C original. If you need to make a change to the authoritative transmittal Form 1094-C information, you do so on the original records by manually adjusting the records. Changes are not needed on non-authoritative transmittal 1094-C records, since the system automatically updates Form 1095-C counts.
Once the authoritative transmittal Form 1094-C has been submitted and accepted by the IRS, the IRS now retains a record of the original authoritative transmittal Form 1094-C. Now, if you need to make a change to the authoritative transmittal Form 1094-C information, do the following:
No correction AIR ID is necessary.
When making changes to the authoritative transmittal Form 1094-C information, the system marks the original authoritative transmittal Form 1094-Cs as corrected and creates new records with the updated information. The new records show a Correction Number greater than zero.
You submit the corrected authoritative transmittal Form 1094-C for a transmission build in the same manner as the original authoritative transmittal Form 1094-C. When you select the corrected authoritative transmittal Form 1094-C for a transmission build, the corrected authoritative transmittal Form 1094-C is always built into a submission containing only the authoritative transmittal Form 1094-C (no 1095-C records). The system automatically makes the necessary adjustments to show the transmission as a Transmission Type C (Corrected).
Correcting an Accepted Submission
Once a Submission has been accepted by the IRS, you need to update the Submission status to A (Accepted) or E (Accepted with Errors). The IRS now has a permanent record of the original Forms 1094-C and 1095-C. If you still need to make a change to the Form 1095-C, the system will:
Edit to make sure a Correction AIR ID has been entered for the Original AIR ID (the AIR ID being corrected).
Instead of changing the original record, the system will flag the original record as having been corrected, and write a new record with the corrected information.
This new record will have a Line Number (RCK5) field incremented by one relative to the original record.
The correction record may be changed multiple times, until it is submitted and accepted by the IRS.
If you make a change to a Covered Individual record, the system automatically creates a correction record for the Offer and Coverage record.
You build and submit a correction transmission similar to an original transmission. The system automatically makes the necessary changes to the XML elements to meet the correction requirements.
If you need to make a correction to the Authoritative Transmittal 1094-C for a taxpayer, a correction AIR ID is not required. If you need to make a change to a submitted and accepted Authoritative transmittal 1094-C, the system will:
Instead of changing the original record, the system will flag the original record as having been corrected, and write a new record with the corrected information.
This new record will have a Line Number (RCK5) field incremented by one relative to the original record.
The correction record may be changed multiple times, until it is submitted and accepted by the IRS.
When the corrected Authoritative Transmittal 1094-C record is selected for a transmission build, it is placed in a separate Submission containing only the Authoritative Transmittal 1094-C.
Non-authoritative transmittal 1094-Cs are not corrected.