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  • The IRS ACA Audit Has Begun: What To Do To Avoid Penalties

Articles

The IRS ACA Audit Has Begun: What To Do To Avoid Penalties

January 5, 2017 Joanna Kim-Brunetti ACA Compliance, Reporting
The IRS ACA Audit Has Begun: What To Do To Avoid Penalties

A round of IRS letters have been mailed out to employers, signifying the start of the IRS’s Affordable Care Act audit process. As the Congressional Budget Office (CBO) anticipates nine billion dollars in ACA-related penalties, your company doesn’t have to be included in that figure. As a rule, Applicable Large Employers (ALE) with 50 or more full-time employees or full-time equivalents 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, as the IRS has urged in its recently released letters to certain employers. If you as an employer have received such an IRS letter, within 30 days of the letter, you are required to respond by checking a box, where you will either:

A. Confirm you are/were an ALE in 2015 and have already filed Forms 1094-C and 1095-C, complete with your company name, EIN, and date of filing.

B. Confirm you are/were an ALE in 2015 and include Forms 1094-C and 1095-C for filing.

C. Confirm you are/were an ALE in 2015 and plan to file Forms 1094-C and 1095-C within 90 days of the letter unless otherwise noted. (Note the reason in the supplied “Other” field on the notice.)

D. Confirm you aren’t/weren’t an ALE in 2015.

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. A sample letter of the ACA audit letter can be seen below.

For information on addressing the ACA audit, visit the free resource: 

  • ACA Audit: Prevention & Protection
  • Free ACA Spot-Audit

 

IRS-LETTER_redacted_2

To learn more about ACA compliance in 2021, click here.


We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Summary
The IRS ACA Audit Has Begun: What To Do To Avoid Penalties
Article Name
The IRS ACA Audit Has Begun: What To Do To Avoid Penalties
Description
A round of IRS letters have been mailed out to employers, signifying the start of the IRS’s Affordable Care Act audit process. As the Congressional Budget Office (CBO) anticipates nine billion dollars in ACA-related penalties, your company doesn’t have to be included in that figure.
Author
Joanna Kim-Brunetti
Publisher Name
The ACA Times
Publisher Logo
The ACA Times
Short URL of this page: https://acatimes.com/odw
Joanna Kim-Brunetti

Joanna Kim-Brunetti

Joanna Kim-Brunetti, Esq., is Vice President of Regulatory Affairs for Trusaic.

View more by Joanna Kim-Brunetti

Related tags to article

ACA ComplianceAffordable Care ActCongressional Budget Office (CBO)Employer Identification Number (EIN)Form 1094-CForm 1095-CIRSPenaltiesReporting
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