Employers Must File ACA Returns Electronically by March 31, 2026

Below is a clear overview of the updated rules and what employers should do now to stay compliant.

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Electronic Filing Now Required for Most Employers

Historically, employers only had to file ACA returns electronically if they submitted 250 or more individual statements. However, a final IRS rule issued on Feb. 23, 2023 drastically lowered this threshold. Employers filing 10 or more information returns in a calendar year must now file all ACA returns electronically.

This 10‑return threshold applies in aggregate, which means:

• Even if an employer only files a few Forms 1094 or 1095,
• They may exceed the threshold once Forms W‑2, 1099, or other information returns are included.

As a result, nearly all businesses required to report under the ACA must now prepare to file electronically.

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Key Action Steps for Employers

With the electronic filing deadline of March 31, 2026, employers should:

✔ Explore electronic filing options

Many organizations will work with a third‑party vendor to transmit ACA forms electronically. This is the most common and efficient method.

✔ Review the IRS ACA Information Returns (AIR) Program

Employers capable of filing on their own can learn more through the IRS AIR Program page, which provides instructions, technical standards and transmission procedures.

The IRS AIR Help Desk (1‑866‑937‑4130) is the primary resource for troubleshooting submission issues.

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Understanding the AIR Program

The IRS AIR Program supports:

• Software developers creating ACA reporting software
• Transmitters submitting returns on behalf of employers
• Issuers (employers) who have the infrastructure to file directly

Most employers rely on a third‑party vendor rather than transmitting through AIR themselves.

If filing independently, employers must complete two steps:

1. Register for IRS e‑Services and request an ACA Transmitter Control Code (TCC)—not required if using a vendor.
2. Complete testing requirements, which vary depending on whether you are a software developer, transmitter or issuer.

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Requesting a Waiver From Electronic Filing

Employers unable to file ACA returns electronically may request a hardship waiver using Form 8508. The IRS recommends submitting waiver requests at least 45 days before the filing deadline.

The first waiver request is automatically granted.

Subsequent requests must include justification such as:

• Cost comparisons showing undue financial hardship
• Disaster‑related business disruptions
• Illness or absence of the person responsible for filing
• First‑year business operations
• Inability of foreign entities to obtain necessary tools

Waivers apply only for the year requested and must be kept for internal records.

Without an approved waiver, employers who fail to file electronically when required may face penalties of up to $340 per return (adjusted annually).

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Extension Requests

Employers can request a 30‑day automatic filing extension by submitting Form 8809 on or before the return due date. No explanation is required, and the form may be filed on paper or electronically through the IRS FIRE System.

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Bottom Line

The shift to a 10‑return threshold means almost all employers will need to file ACA returns electronically beginning with the 2025 and 2026 reporting cycles. Employers should review their filing processes now, determine whether to work with a vendor or use the AIR Program directly, and ensure they understand waiver and extension options if challenges arise.