The IRS has begun sending letters (Letter 226J) to employers who it believes owe a penalty under the ACA §4980H employer shared responsibility rules for benefits provided in 2015. We believe that many of the proposed IRS assessments are due to employer reporting errors, not actual violations of §4980H requirements.
If your brokers’ clients receive the IRS letter, they are probably going to turn to you for help. Please review the attached brief that details what the letter is, what to do if they receive the letter, along with a flowchart to help brokers and clients better understand the process.
IMPORTANT NOTE: Employers only have 30 days from the date of the letter to respond to the IRS. However, the employer can call the IRS phone number (found on the form 14764 included with the letter) to request a 30-day extension. You should advise every employer that receives the letter to immediately call and request the extension.
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