The Patient Protection and Affordable Care Act (ACA) is complex. The ACA penalty process being initiated by the IRS is no exception. Employers receiving notifications (Letter 226J) must respond within 30 days to avoid further action by the IRS. The process your business or organization must take to develop your response must be focused and efficient.
I Received Letter 226J? What Are My Options Now?
If you have received ACA penalty notification, you are not alone. Thousands of employers all over the country are receiving IRS Letter 226J for failing to comply with the Affordable Care Act’s shared responsibility provisions in 2015. While reviewing your ACA penalty notification letter use this as a guide for preparing your response.
Review and Plan
IRS Letter 226-J is issued to Applicable Large Employers who were responsible for Employer Shared Responsibility and failed to comply. All ALEs that receive this notification have 30 days to review and respond to the IRS demands payment and takes further action.
Intentionally Not Offering Health Care Coverage
If your organization made the strategic decision not to offer healthcare coverage, this letter and penalties should be an anticipated business expense.
Gather Necessary Information and Data
In 2015 ALEs were required to offer minimum coverage to 70% of all full-time employees (30 or more hours a week). You will need to review the requirements for the year(s) in question and collect all information to respond to the notification.
ACA Filing Assistance
While you are required to interact with the IRS directly, you should reach out to ACAwise for 2017 ACA reporting. Also, if your organization previously filed with ACAwise, we will be able to provide additional help, resources, and information for reviewing the process and determine if any errors were previously made.
Review Previously Filed 1094-C and 1095-C
It might be that case that an employer checked an incorrect box or proved the wrong information. ACAwise walks you through the filing process and will help to review your previously filing 1094-C and 1095-C. We are a full-service ACA reporting and compliance solution, so we ensure the information provided to the IRS is accurate.
Submit IRS Form 14764
ALE’s must agree with the employers shared responsibility payment or disagree with the assessment. To answer notification, Letter 226-J employers must complete and submit Form 14764. Do not submit Forms 1095-C and 10994-C.
Is your business feeling confident about its ability to comply with ACA reporting requirements in 2018? If you are hesitant or wish to speak with an ACA expert on ways ACAwise can help file your ACA Forms confident, contact us and we will be happy to discuss the best way moving forward for your business.