For employers, ACA filing season doesn’t end on March 31 — it extends well beyond if there are errors or rejections to resolve. A critical but often overlooked part of the process is the IRS 60-day correction window, which gives organizations a second chance to get their filings right.
If your ACA submission is rejected, you have 60 calendar days from the date the rejected status was made available to submit a corrected transmission. As long as the IRS receives an acceptable replacement within this timeframe, the filing is considered timely — as if it had been accepted on the original date.
This grace period offers employers a valuable opportunity to correct errors and avoid penalties — but only if they act quickly and submit a corrected file that meets all requirements.
In this blog, we’ll break down what the 60-day window means, how to avoid common filing errors, and how Trusaic helps employers correct, resubmit, and stay in compliance.
Understanding the 60-Day Correction Window
According to the IRS (Publication 5165, Page 80), when a submission is rejected through the ACA Information Returns (AIR) system, the employer has 60 days from the date the rejection status is made available to correct and resubmit.
If a replacement file is successfully transmitted and accepted within that 60-day period, the IRS will treat the filing as if it was submitted on time. This is especially important because failure to submit or correct errors can result in:
- Rejected filings not being counted toward timely ACA compliance
- Penalties under IRC Sections 6721 and 6722, which apply to late or incorrect filings and failure to furnish accurate employee statements
- Potential IRS inquiries or Letter 226J penalty notices
Common Reasons for ACA Filing Rejections
Filing rejections are more common than many employers realize — and often stem from avoidable issues. These include:
- Missing the Plan Start Month – a required field for IRS processing
- Invalid special characters or extra spaces in employee or dependent names
- ZIP codes with missing leading zeros, especially for East Coast employees
- Names or address fields exceeding character limits
- Incorrect or contradictory Line 14/Line 16 codes
- Missing or invalid employee contribution amounts on Line 15 when required
These errors not only cause delays but also trigger rejections, resetting the compliance clock and putting your organization at risk if you don’t act within the 60-day correction period.
How Trusaic Helps You Stay ACA Compliant
At Trusaic, we understand how stressful it can be to navigate last-minute corrections and rejections, especially when the risk of penalties looms large. Our ACA Compliance solution is designed to help employers avoid rejections entirely — and recover quickly if one does occur.
Here’s how we support you throughout the process:
1. Real-Time Error Detection and Validation
Our system performs hundreds of automated checks to catch common errors—like invalid codes, formatting issues, or missing contribution amounts — before you submit your file. This dramatically reduces your risk of rejection.
2. Expert Guidance During the 60-Day Window
If you do receive a rejection, we act fast. Our ACA experts will:
- Review the rejection notice
- Identify the exact cause
- Correct the error(s)
- Resubmit your replacement file within the 60-day timeframe
We’ll also track the corrected filing to ensure it’s accepted by the IRS and counted as timely.
3. Seamless TCC Management and Filing
Trusaic handles electronic submissions using our own approved Transmitter Control Code (TCC), removing a major administrative burden for employers. This allows us to act quickly — whether we’re submitting your initial file or responding with a corrected one.
4. End-to-End Compliance Tracking
We don’t just fix problems — we prevent them. Our solution includes:
- Bi-directional data integration with leading HR and payroll platforms
- Time-series tracking to capture employee eligibility changes across time
- A penalty risk assessment tool to help you avoid IRS notices altogether
Don’t Risk Missing the 60-Day Window
Filing rejections happen—but the consequences don’t have to. With the IRS’s 60-day correction window, employers have a chance to fix their ACA filings and avoid costly penalties — but only if they act quickly and resubmit accurately.
Whether you’re recovering from a rejected file or looking to prevent one in the future, Trusaic has the tools, expertise, and support you need to stay compliant.
Don’t let a simple mistake turn into a costly penalty.
Schedule a demo today to learn how Trusaic helps you correct errors, meet deadlines, and avoid ACA compliance risks.