The IRS AIR (Affordable Care Act Information Returns) system does not provide a direct void option. However, you can still correct errors on previously filed 1095-B or 1095-C forms by using the correction process. Below is a step-by-step guide with real-world examples.
Correcting an Incorrectly Filed 1095-B
If you filed a 1095-B in error, take the following steps to fix it:
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Check the CorrectedInd box.
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Revise Part IV to remove all individuals who should not have been reported.
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Leave the CoveredIndividualGrp tags out of the corrected file.
Example – Incorrect 1095-B Filing
Scenario: BBBB Insurance Company files a 1095-B for George Catoctin showing that George and his three children had coverage for the full year. Later, they realize George was not covered at all.
Correction: BBBB Insurance Company files a Corrected 1095-B for both George and the IRS. The corrected form removes George and his children from the Covered Individual section, leaving Part IV blank.
Correcting an Incorrectly Filed 1095-C
If you filed a 1095-C incorrectly, follow these steps to update the record:
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Check the CorrectedInd box.
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Revise Part II with the employee’s correct status data.
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Uncheck the CoveredIndividualInd box.
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Revise Part III to remove any individuals mistakenly listed as covered.
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Leave the CoveredIndividualGrp tags out of the corrected file.
Example – Incorrect 1095-C Filing
Scenario: XYZ Plumbing files a 1095-C for John Whitney and his wife, showing coverage for all 12 months. Later, the company realizes John left in December of the prior year.
Correction: XYZ Plumbing files a Corrected 1095-C with the following updates:
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Line 14: Code “1H” (No offer of coverage).
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Line 15: Left blank.
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Line 16: Code “2A” (Not employed).
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CoveredIndividualInd: Unchecked.
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John and his wife are removed from the CoveredIndividualGrp section.
Key Takeaway
Although the IRS AIR system does not allow you to “void” a 1095-B or 1095-C, you can achieve the same result by filing a corrected return. This process ensures the corrected form reflects the employee’s true coverage status.
To make corrections easier, many businesses use 1095 software that automates reporting, reduces mistakes, and ensures compliance. If you prefer, 1099FIRE can e-file 1095 forms on your behalf, saving time and reducing filing risks.