In a recent announcement, the IRS indicated that it will begin sending notices to employers that have failed to comply with the employer responsibilities related to the Affordable Care Act (ACA). For the 2015 calendar year, the IRS plans to issue Letter 226J informing applicable large employers of their potential liability for an employer shared responsibility payment (ESRP), if any, in late 2017. The determination of any potential penalty will be based on the information reported on IRS Forms 1094-C and 1095-C as well as those full-time employees that were allowed insurance premium tax credits.
Employers whom receive this letter should take notice and respond accordingly by the date noted on their letter. If you don't respond by the response date on the first page of this letter, the IRS will send you a notice and demand for the ESRP that was proposed and assessed. The ESRP will be subject to IRS lien and levy enforcement actions. Interest will accrue from the date of the notice and demand and continue until you pay the total ESRP balance due. Those employers who fail to respond to this notice will be assessed penalties that are also subject to IRS lien and levy enforcement action.
If you have any questions, contact your UHY LLP professional at one of our many locations.
Wednesday, April 24, 2019 | 7:30 AM – 9:30 AM EDT | The Hartford Club