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.
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 below, you are taking the first step toward reducing or eliminating your ACA penalty.
The IRS issues Letter 5005A 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 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.
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.
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.
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.
Schedule DemoBefore 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).
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 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.
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.
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.
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.
Schedule DemoThe ACA Employer Mandate requires applicable large employers (ALEs) to offer affordable health insurance coverage to full-time employees and their dependents. If you’re an ALE and fail to comply with this mandate, you may receive penalty notices from the IRS.
How can your service help reduce or eliminate my IRS penalty assessments? ExpandOur service specializes in assisting employers with responding to IRS penalty notices related to ACA compliance. We can help you navigate the complex process of responding to penalty notices, providing expert guidance to reduce or eliminate your liability.
What should I do if I receive a penalty notice from the IRS? ExpandIt’s essential to respond promptly and accurately to any penalty notices from the IRS. Ignoring these notices can lead to additional interest and penalties. Our service can help you formulate an effective response to address the IRS’s concerns.
How quickly should I respond to an ACA penalty notice? ExpandIt’s crucial to respond to ACA penalty notices as soon as possible to avoid further penalties and potential enforcement actions by the IRS. Our team can assist you in crafting a timely and comprehensive response.
Can I negotiate with the IRS to lower my penalty amount? ExpandWhile it may be possible to negotiate with the IRS to lower penalty amounts in some cases, it depends on various factors, including the specific circumstances of your non-compliance. Our experienced professionals can advise you on the best approach to address your penalty notices effectively.
What happens if I don’t respond to an IRS penalty notice? ExpandFailing to respond to an IRS penalty notice can result in additional interest, penalties, and enforcement actions, including property seizure. It’s essential to take these notices seriously and respond promptly.
How do I know if I filed my ACA Forms 1094-C and 1095-C correctly? ExpandOur service can review your ACA reporting forms to ensure accuracy and compliance with IRS requirements. We’ll identify any errors or omissions and help you take corrective action to avoid future penalty notices.
Can you help with responding to all types of ACA penalty notices? ExpandYes, our service specializes in assisting employers with responding to various types of ACA penalty notices issued by the IRS. Whether you’ve received Letter 5005-A, Letter 972CG, Letter 226J, or others, we can provide expert guidance and support.
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