Annual Offer of Coverage Code...

1095C-012-01 - If Form 1095C 'AnnualOfferOfCoverageCd' does not have a value, then all occurrences of 'MonthlyOfferCoverageGrp' (JanOfferCd through DecOfferCd) must have a value.

If you read through IRS AIR Webinar's, the solution to this error is to "[i]nclude a value in either the AnnualOfferOfCoverageCd or each Monthly Offer of Coverage". This solution seems simple enough but lets dig a little deeper.

Take a look at the excel sample below:

Here Col BL has YES which identifies the covered individual as Self-Insured. There may be data such as the first and last name of the covered individual and a SSN. Oftentimes there is no covered individual data and just Col BL has the YES and the excel file looks like the following:

The error arises because Col BL is saying that a covered individual exists but then no data exists spelling out exactly which months the person was covered or whether they were covered for all 12 months.

There are two solutions and the IRS states the obvious solution which is to include a value in either the Annual Offer Of Coverage or each Monthly Offer of Coverage. The other solution is to remove the YES from Col BL.