If you receive any penalty correspondence from the IRS, be sure to review it carefully. With the IRS still clearing its backlog, it’s very possible that you may have received the notice in error.

The agency was recently criticized for wrongfully mailing out automated notices communicating outstanding filings, penalties, and other tax information to organizations. The notices were issued in error and the agency was unaware of it because the information it was seeking was in the massive backlog of unprocessed information.

If the notice you receive is accurate, best practices suggest replying via electronic submission. This benefits you for two reasons:

• Electronic submission avoids the paper mail backlog.
• The electronic transmission provides you with an opportunity to more easily save a record of your response. In the event the IRS contacts you again, you will have the necessary documentation to prove you took timely action.

If your organization wants to ensure you’re never hit with an ACA penalty, contact Trusaic to learn about your possible ACA solutions. To date, we’ve helped our clients prevent over $1 billion in IRS penalty assessments.