Yesterday, the IRS reiterated that employers violating the ACA can expect penalty letters in late 2017 and also updated that portion of its website dedicated to the Employers’ ACA obligations here. The update explains the form of notices employers can expect to receive as a result of IRS penalties pursuant to the ACA.

Those notices are listed below with a brief description:

1) Letter 226J

  • Alerts the employer that a penalty is owed and why
  • Provides a table of applicable monthly penalties
  • Addresses the means of submitting penalty payments
  • Explains when employers may appeal and what action is required

Note – a response is required within 30 days after receiving a Letter 226J or the IRS will proceed with its stated action.

2) Letter 227

  • Response an employer will receive from the IRS acknowledging an appeal
  • Deadline for employers to request a pre-assessment conference with the IRS Office of Appeals

3) Notice CP 220J

  • The notice and demand for payment describing how payments will be made

Note – Payments will NOT be made on the ALE’s tax returns.