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ACA Reporting Services – Penalty Relief Consultation

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Penalty Relief Consultation – Affordable Care Act Reporting Services

Hello again,

This post is for Applicable Large Employers (ALEs) required to comply with the Affordable Care Act. We hope you find it useful.

The following is sourced from The ACA Times about ACA penalty notices:

Employer Mandate

“One of the more complex sections of the Affordable Care Act is the Employer Shared Responsibility Provisions, also referred to as the ACA Employer Mandate.

Under the ACA’s Employer Mandate, Applicable Large Employers (ALEs), organizations with 50 or more full-time employees and full-time equivalent employees, are required to offer Minimum Essential Coverage (MEC) to at least 95% of their full-time workforce (and their dependents) whereby such coverage meets Minimum Value (MV) and is affordable for the employee or be subject to IRS 4980H penalties.

While the ACA was first enacted in 2010, the reporting requirements of the ACA’s Employer Mandate did not ultimately take effect until 2015. If you paid attention to the signs, ACA penalty assessments for non-compliance from the IRS should come as no surprise.

Perhaps employers were lulled into a false sense of hope that the ACA would never be enforced.

Penalty Enforcement

In November 2017, almost two years since the first ACA filings were required to be filed with the IRS, the federal agency began issuing ACA Letter 226J penalty notices to ALEs of which the IRS had determined had failed to comply with the ACA Employer Mandate for the 2015 tax year.

In October 2018, the IRS began issuing Letter 5699 penalty notices to employers identified as having failed to offer ACA-qualified health insurance coverage to 95% of their full-time employees for the 2016 tax year.

In January 2019, the IRS began issuing the new ACA penalties under IRC 6721/6722 to employers identified as having failed to distribute IRS Form1095-C to employees and/or having failed to file IRS forms 1094-C and 1095-C with the federal tax agency by required deadlines for the 2015 and 2016 tax years. The penalties were issued using Letter 5005-A/Form 866-A.

Minimize Risk

The important question now is: What can you do to ensure your organization or clients can minimize their risk of receiving IRS penalties for not complying with the ACA?

·         If you haven’t filed ACA information with the IRS, do it now.

·         Identify the potential risk of being assessed an ACA penalty.

·         Move swiftly if you receive an IRS penalty notice with ACA penalties.”

Passport Software’s ACA Reporting Services include consultation services for penalty notices, and has helped many clients completely avoid, or greatly reduce, penalties.

Call 800-969-7900 – Or Contact Us to see how we can help.

 


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