You’ve entered all the codes where you should. You know your company’s safe harbor affordability code without double-checking. You know every single employee’s ACA-full-time status for 2018. In other words, you have completed ACA reporting for 2018!
So, can you close the books on the ACA for 2019? Of course not. Not only did we recently post about other things happening with the ACA, but the IRS just issued another wave of proposed employer shared responsibility penalty assessments.
That’s right, another wave of penalty assessments ranging from tens of thousands of dollars into the millions is being sent to unsuspecting employers all across the country.
What if you’re one of the unlucky employers to receive a proposed employer shared responsibility penalty assessment? First, breathe. The assessment is only “proposed” at this point which means the IRS will give you an opportunity to explain why your company may not owe any penalty. Time to take a closer look at the proposed assessment:
Once you’ve determined what the problem is, craft a response to the IRS. We think the best response clearly explains the reason(s) why your company doesn’t owe the penalty, and also provides or offers backup documentation to support your company’s position.
After you’ve sent your response to the IRS, you’ll need to wait. Response time varies, but we’re happy to say that we’ve often seen response times of 2-4 months, which is pretty quick for a large governmental agency. Ideally the IRS will agree with you and eliminate or significantly reduce the penalty. In the event the IRS does not, you will still be able to contest the penalty and may wish to seek the assistance of a tax lawyer or accountant.
Have questions? ABRC can help. Contact us.
Sarah provides employer-focused guidance on human resource matters. With an emphasis on employee benefits and the Affordable Care Act, she distils the complexity of employment laws into understandable action items that meet a client’s business goals.
Sarah provides employer-focused guidance on human resource matters. With an emphasis on employee benefits and the Affordable Care Act, she distils the complexity of employment laws into understandable action items that meet a client’s business goals. During previous private practice experience, Sarah handled numerous complex benefit matters, including the transition of benefit plans in large corporate acquisitions, de-risking solutions in pension plans, contested health plan claims, DOL and IRS audits and the implementation of ACA-compliant health plan solutions. Sarah graduated from University of Wisconsin Law School, with a Bachelor of Arts degree from Grinnell College.
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