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<span style=”font-weight: 400;”>The <span><span itemprop=”Organization”>IRS</span></span> recently announced it is suspending certain mailings of automated collections and various other notices in an effort to get through its current backlog.</span>
<span style=”font-weight: 400;”>As such, the agency will no longer be sending out select mail notifications, </span><a href=”https://www.irs.gov/newsroom/irs-continues-work-to-help-taxpayers-suspends-mailing-of-additional-letters” rel=”noopener” target=”_blank”><span style=”font-weight: 400;”>including </span></a><span style=”font-weight: 400;”>CP501, CP503, and CP504 notices. The last notice has previously been used to inform taxpayers of an inability to pay an ACA penalty assessment. </span>
<span style=”font-weight: 400;”>Employers should note that this means the IRS will not be sending out automated mail when you make tax-related payments. Consequently, be sure to keep an ongoing record of any payments, penalty explanations, and any other tax-related correspondence.</span>
<span style=”font-weight: 400;”>If you thought the <span><span itemprop=”Organization”>IRS</span></span> had forgotten, forgiven, or otherwise dismissed any outstanding tax obligations, however, think again. The agency has most certainly not done so and it’s merely reallocating resources elsewhere to make headway on the historic backlog. </span>
<span style=”font-weight: 400;”>This also means that the agency will continue to issue <span><span itemprop=”product”>ACA</span> penalty assessments as planned.</span></span>
<b>If you receive a notice from the IRS</b>
<span style=”font-weight: 400;”>Review it carefully. If you believe the information stated in the notice is accurate, take action to rectify the situation. Penalties and interest can still accrue on outstanding responsibilities and owed balances.</span>
<span style=”font-weight: 400;”>If you receive an ACA penalty notice </span><a href=”https://trusaic.com/aca-penalty-letter/?utm_content=inbody-1″ rel=”noopener” target=”_blank”><span style=”font-weight: 400;”>contact us</span></a><span style=”font-weight: 400;”> to learn about our penalty reduction services. We’ve helped our clients prevent over $1 billion in ACA penalties. We can assist in reducing or eliminating any ACA penalty assessment and will handle all communications timely and accurately so you can continue running your business.</span>
<b>Here’s how you should handle upcoming ACA filings</b>
<span style=”font-weight: 400;”>For ACA returns due in the near term, be sure to submit your filings ahead of time. It’s important to also record details relating to your filings, including the day you submitted your returns, if you had any assistance preparing the ACA returns, and any other information pertinent to the filings. </span>
<span style=”font-weight: 400;”>Best practices encourage </span><a href=”https://acatimes.com/ales-e-file-aca-returns?utm_content=inbody-2″ rel=”noopener” target=”_blank”><span style=”font-weight: 400;”>electronically filing your ACA returns</span></a><span style=”font-weight: 400;”> for the 2021 tax year. This will provide you with more time to file with the IRS, create an automatic receipt of your filings, and confirm that your filings were received timely and in the correct format. </span>
<span style=”font-weight: 400;”>If this is your first year using the electronic method for ACA filing, consider partnering with an ACA compliance expert who has an established and secure network for transmitting ACA returns to the tax agency. Given the current strain on IRS staff, electing to work with a reliable ACA compliance expert like </span><a href=”https://trusaic.com/?utm_content=inbody-3″ rel=”noopener” target=”_blank”><span style=”font-weight: 400;”>Trusaic</span></a><span style=”font-weight: 400;”> will most certainly help ensure a successful and efficient ACA filing process.</span>
<b>Background</b>
<span style=”font-weight: 400;”>Since COVID-19 hit the U.S. in March of 2020, the IRS has been </span><a href=”https://acatimes.com/ales-e-file-aca-returns?utm_content=inbody-4″ rel=”noopener” target=”_blank”><span style=”font-weight: 400;”>facing a number of new challenges</span></a><span style=”font-weight: 400;”>, from office closures across the country to an entirely new set of tax credits and incentives to process. As a result, the agency has been inundated by a massive backlog of unprocessed taxpayer documents.</span>
<span style=”font-weight: 400;”>Members of Congress and tax consultants have both criticized the IRS for its inability to deal with the backlog of unprocessed correspondence and mailings. </span>
<span style=”font-weight: 400;”>The reason for their criticism is that the agency is mailing out automated notices informing taxpayers of outstanding filings, penalties, and other related tax information – but the inquiries could very well be in the massive backlog of unprocessed mail documents. </span>
<span style=”font-weight: 400;”>The move to suspend the automatic notices is a new effort to help resolve the backlog. Earlier this year the agency </span><a href=”https://acatimes.com/irs-backlog-poses-aca-risk-for-employers/” rel=”noopener” target=”_blank”><span style=”font-weight: 400;”>announced the reassignment of over 1,200 employees</span></a><span style=”font-weight: 400;”> to more efficiently handle the crisis.</span>
<span style=”font-weight: 400;”>As the agency continues to work its way through the backlog, employers should focus on completing their ACA filings accurately and on time. The agency has previously indicated that it would be </span><a href=”https://acatimes.com/3-signs-irs-increasing-efficiency-aca-enforcement/” rel=”noopener” target=”_blank”><span style=”font-weight: 400;”>increasing enforcement efforts for ACA non-compliance</span></a><span style=”font-weight: 400;”>. </span>
<span style=”font-weight: 400;”>Download the </span><i><span style=”font-weight: 400;”>Employer’s Guide to Coding ACA Form 1095-C</span></i><span style=”font-weight: 400;”> to see real-world examples of how to code health coverage on the IRS forms accurately and file with confidence.</span>
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