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IRS E-filing Requirements for Banks: An Overview

The IRS mandates banks to e-file various tax-related documents, ensuring compliance with federal regulations. The mandate includes the Affordable Care Act, Information Returns, and W-2 filing types.

Collaborative Tax Filing: Multi-User Setup for Bank Associations and Branches

  • Multi-User Collaboration: Allows bank associations to collaboratively manage tax filings with smaller branches, streamlining the process.
  • Centralized Setup with Local Completion: Central teams can initiate filings, setting up the necessary framework, before handing off to branch teams for finalization.
  • Optimized Workflow: Enables specialization and division of labor, improving the accuracy and efficiency of tax submissions.
  • Seamless Handoff Process: Ensures a smooth transition between the central team and local branches, with clear guidelines to prevent oversight.
multi-user support for banks

Bank Associations

As the crucial link between our e-filing solutions and individual banks, bank associations play a pivotal role in ensuring tax compliance across the banking sector. Our software is designed to empower these associations by streamlining the e-filing process for an array of critical IRS forms, including Form 1095-B and Form 1099-INT. With our platform, bank associations can efficiently manage and submit these forms on behalf of their member banks, ensuring accuracy and adherence to IRS regulations.

By leveraging our software, bank associations enhance their operational efficiency and strengthen their support network, offering member banks a seamless, error-free approach to managing their IRS filing requirements. Our solution ensures that every step of the filing process, from data collection to submission, is streamlined and secure, reinforcing the association's role as a critical facilitator of tax compliance within the banking community.

What is Form 1095-B?

Form 1095-B is an information return filed by health insurance providers or employers offering self-funded coverage with fewer than 50 full-time + full-time equivalent employees.

Insurance Providers
Self-Funded Small Employers

less than 50 full-time + full-time equivalent employees

For more info on Tax Year 2023 Form 1095-B, click here.

Efficiency and Speed of E-filing

E-filing significantly enhances the efficiency of tax document processing for banks. Unlike traditional paper filing, electronic submissions are processed more quickly, enabling faster IRS confirmation. This rapid turnaround is crucial for banks to stay compliant and manage their financial reporting in real-time. For the tax year 2023, the IRS e-file threshold is only ten forms, effectively making e-filing a requirement for most institutions.

Simplified Multi-Employer Tax Filing: One-Step Excel Import Process

Experience unparalleled efficiency with our innovative software solution designed to streamline the tax filing process for banks and financial institutions. Our system is engineered to easily handle the complexities of managing multiple employers. With just a single Excel file upload, you can import data for multiple Employer Identification Numbers (EINs) simultaneously. Our intelligent software effortlessly takes on the hard work of segregating each bank and its corresponding recipients into their own distinct filings. This meticulous attention to detail ensures accuracy and compliance across all submissions without the manual hassle.

The process is as straightforward as it gets: Drag, Drop, & Done! This intuitive design is tailored for maximum convenience, allowing you to manage multiple employer filings in one seamless action. Our software saves you significant time and minimizes the potential for errors that can occur with manual data entry and processing. By consolidating this task into a single, efficient step, we empower you to focus on more strategic aspects of your business. At the same time, we handle the complexities of tax reporting. This feature especially benefits tax preparers and financial departments dealing with bulk processing, offering a streamlined, error-free approach to managing a diverse client base.

bulk upload 1095-B

Advanced Validation for Error-Free IRS Compliance: Direct In-Page Editing

Leverage the power of our state-of-the-art software, equipped with a rigorously tested importer that simplifies your e-filing process by checking your information against hundreds of IRS rules. With this advanced validation feature, you can confidently navigate the complex maze of tax regulations without worrying about the minutiae of lesser-known rules. Our system meticulously scans your data, immediately ensuring compliance by identifying and flagging any discrepancies or errors.

What sets our solution apart is its user-centric design: should any issues be detected, our software doesn't just stop at flagging them. Instead, it empowers you to make direct, in-page edits to your spreadsheet. This innovative approach eliminates the need to restart the import process from the beginning, saving you invaluable time and reducing the risk of additional errors. Our commitment to streamlining your tax filing process extends beyond mere compliance; it's about enhancing efficiency, accuracy, and peace of mind. With our software, you're not just meeting IRS standards—you're setting a new standard for ease and reliability in financial reporting.

Reduced Risk of Errors

One of the most notable benefits of e-filing is the substantially reduced risk of errors. Electronic filings allow automated checks to identify and flag common mistakes before submission. Furthermore, should errors be detected post-submission, the process for making corrections is much more straightforward and faster than paper filings.

What are the types of Form 1095 Penalties?

ACA penalties are typically split into two categories:

  1. Employer Shared Responsibility Payment (ESRP): This penalty applies to large employers who do not offer minimum essential coverage to at least 95% of their full-time employees (and their dependents), and at least one of their full-time employees receives a premium tax credit for purchasing individual coverage on one of the health insurance marketplaces. The ESRP is also known as the "employer mandate" or "play or pay" penalty.

  2. Reporting and Disclosure Penalties: These penalties are assessed for failing to file required information returns with the IRS or to provide required statements to individuals. These information returns include Form 1094-C and Form 1095-C, which large employers must file under the ACA's reporting requirements.

Please click here to learn more about the various types of IRS ACA penalties and their corresponding fines.

What are the penalties for not submitting ACA Forms 1095-B & 1095-C?

The IRS determines ACA penalties based on various factors, including missing the deadline, providing incorrect information, or using paper forms when electronic filing is required.

The IRS has increased the penalty amounts for the 2024 filing year.

Failure to file ACA 1095 Forms 2024

$310 per form

up to

$1,261,000 per year (smaller businesses)

$3,783,000 per year

Failure to furnish ACA 1095 Forms 2024

$310 per form

up to

$1,261,000 per year (smaller businesses)

$3,783,000 per year

Intentionally not filing for 2024

$630 per form

no maximum penalty

Faster IRS Confirmations

E-filing provides banks with almost immediate feedback on the status of their submissions. This is a significant advantage over paper filing, where confirmations take weeks or months. Quick feedback loops allow banks to promptly address any issues and ensure their filings are in order.

Operational Efficiencies

Beyond compliance, e-filing offers operational efficiencies. By streamlining the submission process, banks can allocate fewer resources to manual tax preparation and focus more on strategic activities. This shift reduces operating costs and improves overall productivity and financial management.

All Features Included

Purchasing any BoomTax package will give you everything you need to complete your filing.

This includes:

  • Federal E-File
  • State E-File
  • Recipient Copy Download as PDF
  • Official IRS Copy Download as PDF
  • Unlimited Corrections

1095-B Bulk Import

Import many companies in one spreadsheet to simplify data input.

Data Validation

We validate your data against hundreds of IRS rules.

Hands Off E-File

No IRS registration or testing required.

Free Corrections

Make as many changes as needed for free.

Identifying Compliance Challenges

Banks need help maintaining compliance with IRS e-filing requirements. These challenges often stem from the dynamic nature of tax regulations, which can change frequently, and the sheer volume of data that banks must manage and report accurately. Keeping up with these changes and managing data effectively ensures compliance and avoids penalties.

Staying Updated with Regulations

Banks must implement robust strategies to stay informed and navigate the ever-changing landscape of tax regulations. This includes dedicating resources to monitor IRS updates, engaging with professional tax advisors, and participating in industry forums. Banks can promptly adjust their compliance strategies by staying ahead of regulatory changes.

Managing Large Volumes of Data

Managing and accurately reporting large volumes of financial data is another significant challenge. Banks should leverage technology solutions that offer data aggregation, validation, and filing capabilities. Investing in software that automates these processes can significantly reduce the risk of errors and improve efficiency.

3 step process

Our Commitment to Data Security in E-filing

Our data centers, printing facility, and helpdesk are all HIPAA compliant, and all activity on the platform is automatically audited, monitored, and logged to fend off intrusions actively. All data received on the BoomTax platform is encrypted at every junction. From transport to encryption at rest for private blob stores (256-bit AES encryption) to database and row-level encryption in SQL Azure, we make sure your company's data and information are safe.

Social Security numbers are masked in our UI. They are also masked in employee printouts by default (as suggested by the IRS). We don't store any billing details in our system, as this is handled through a 3rd party merchant service. We will only ask for what is necessary to complete your filing. This keeps the surface area for a potential attack small and limits the fallout in the unlikely event of a breach. As a dedicated serverless Azure IaaS consumer, we also benefit from Microsoft's security posture as our resources are compliant with a myriad of security controls (including SOC-2).

Training Our Team on Data Privacy

We recognize that a secure system is only as strong as its weakest link. That's why we invest in comprehensive training for our team, emphasizing the importance of data privacy, phishing awareness, and secure information handling practices. This commitment to education fortifies our security culture, safeguarding your data from accidental breaches.

Can I submit ACA 1095 Forms with BoomTax?

BoomTax will streamline your ACA filing process in 3 simple steps!

Import Your Data

You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.

Step-By-Step Wizard

We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.

E-File & Mail Employee Copies

Once your data is loaded, you can e-file and distribute employee copies in minutes.

Takes Only 30 Seconds