This three part series focuses on what employers should be doing now for 2018 ACA compliance and reporting, including addressing IRS Penalty Letter 226-J.
IRS employer penalties are a reality of the Affordable Care Act. If your organization receives an IRS Letter 226-J, you need to take immediate steps:
- Look at the due date – Timely response to the IRS is critical.
- Understand why you received the Letter 226-J – Did you submit a portion of the 1094 in error? Was the “minimum essential coverage” designation incorrect?
- Review employees named in the letter as having received subsidies through a Health Insurance Marketplace – What months did they receive the subsidies and why?
- Be prepared to provide documentation– Seek the assistance of legal counsel or a full-service ACA compliance and reporting service to help demonstrate a) a qualifying offer was made, but waived, or b) the employee did not qualify to receive an offer.
- Make sure your organization is getting subsidy notices. While delivery of Marketplace notices may be running behind, confirm who is to receive such notices, and have a standard operating procedure in place for timely follow up and resolution when needed.
