Updated from original blog post on December 4, 2017.
As more organizations start to prepare for the possibility of receiving a holiday greeting from the IRS in the form of Letter 226J, a new infographic is available to explain how to respond if your organizations receives this letter.
Letter 226J is the communication that provides the general procedures the IRS will use to propose and assess the Affordable Care Act’s (ACA) employer shared responsibility payment, or ESRP. The letters are being sent to businesses with 50 or more full-time or full-time equivalent employees—referred to as Applicable Large Employers, or ALEs—on what they owe for failing to comply with the ACA’s employer shared responsibility mandate for IRS filings related to the 2015 tax year.
The infographic describes the procedure undertaken by the IRS to determine whether an organization has not complied with the Affordable Care Act (ACA), how penalties are calculated, and how you can mount a defense to eliminate or reduce proposed ACA penalties. With 30 days to respond upon receipt of IRS Letter 226J (you may want to request a reasonable extension), the process your organization undertakes to develop your response needs to be focused and efficient.
For those of you who have not yet received a Letter 226J now is not the time to sit back. The process has just started. More Letters 226J will be sent by the IRS in the weeks ahead.
With half the businesses in the U.S. saying they are not confident in their ability to satisfy ACA requirements, and reported penalties in the millions of dollars being assessed by the IRS against the organizations receiving Letter 226J, the stakes are high. Now is the time to get prepared. This infographic can help.
Click here to download a printable version.
![IRS Letter 226J Infographic Details Response Process [Updated]](https://acatimes.com/wp-content/uploads/irs226J-holidayseason-2017.jpg)
