ACA non-compliance is costly for employers

We can reduce or eliminate your IRS penalty assessments

ACA non-compliance is costly for employers

We can reduce or eliminate your IRS penalty assessments

With the IRS becoming increasingly more aggressive in its ACA enforcement efforts, timing is of the essence when responding to a penalty notice. By filling out the form to your right, you are taking the first step towards reducing or eliminating your ACA penalty.

Filed incorrectly or did not file/distribute penalties

  • Letter 226J

The IRS sends Letter 226J to Applicable Large Employers (ALEs) identified as having failed to comply with the ACA’s Employer Mandate. This penalty notice is triggered when one of the ALE’s full-time employees receives a premium tax credit. The IRS will send subsequent Letter 227s, which acknowledge the employer’s response to the initial penalty assessment after an ALE responds to Letter 226J.

  • Letter 5005-A

The IRS issues Letter 5005-A to employers that did not file their ACA Forms 1094-C and 1095-C with the tax agency and/or failed to distribute 1095-Cs to their employees for a particular reporting year.

  • Letter 972CG

Letter 972CG is a late penalty notice issued to employers that fail to file Forms 1094-C and 1095-C by the corresponding deadlines for a specific tax year under IRC section 6721.

  • CP215

Civil Penalty 215 demands an employer shared responsibility payment (ESRP) from an employer after the IRS has reviewed an employer’s response to an ACA penalty assessment.

  • CP504B

Civil Penalty 504B communicates that an employer has an outstanding ACA penalty assessment, and the IRS is going to levy the employer’s property in the amount the employer owes.

ACA penalty warning and additional information notices

  • Letter 5699

Before receiving a penalty notice for failing to file or furnish, the IRS will issue precursor Letter 5699, which asks employers to confirm their filing details for a specific tax year(s).

  • Letter 5698

The IRS sends Letter 5698 after an employer has responded to Letter 5699 and requests more information from the employer or informs the employer of their liability regarding the filing and furnishing of Forms 1094-C and 1095-C.

  • Letter 1865C

Letter 1865C is a notice sent to employers if the IRS cannot process their ACA reporting Forms 1094-C and 1095-C. Some examples include a typo in your company’s name or EIN.

  • Letter 3064C

The IRS issues Letter 3064C to let employers know that they have decided on a penalty assessment that an employer may have received or to request additional information.

  • Letter 1948C

The IRS will issue Letter 1948C following an employer’s response to penalty notice 972CG. Letter 1948C will either waive the penalty by accepting the employer’s response or request additional supporting information.

Reduce your ACA penalty

T_210256 - 2018 226-J letter Redaction

Failing to quickly reply to ACA penalty assessments could incur additional interest and result in the IRS seizing your property. If you have received a penalty notice, we can help you plan your response to reduce or eliminate your liability.

Since employers were first required to comply with the ACA’s Employer Mandate in 2015, we’ve helped our clients save over $1 billion in ACA penalty assessments.