At the close of 2016, the IRS letters mailed notices to employers, signaling the start of the IRS’s Affordable Care Act (ACA) audit process. Despite much talk of an ACA repeal nearing closer, penalties for 2015, 2016, 2017, and possibly 2018 would still linger for those Applicable Large Employers (ALEs) who fail to be compliant with ACA mandates. So much so, that the Congressional Budget Office (CBO) has an escalating figure in the billions of dollars, predicting what employers will pay in penalties.
As a rule, employers with 50 or more full-time employees must offer healthcare coverage to at least 95% of their full-time employees. This information is reflected in the filing of
Forms 1094-C and 1095-C.
However, in the world of ACA compliance, consider this notice as a step one. The letter aims to simply confirm that you were or were not an ALE in 2015 and have or have not filed the correct forms. Further, the notice requests that you advise if you plan to submit said forms. It’s as simple as that. If you as an employer have received such a letter, within 30 days of the letter, you are required to respond. Is there a 30-day lapse since you’ve received the letter? You’d better hurry.
This is perhaps the simplest means to avoid/minimize reporting penalties that can stem from a lack of ACA compliance. Should you have any questions, contact the IRS immediately upon receipt of their Notice. Check out a sample form below.
For information on addressing the ACA audit, visit these free resources:
