The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Legal
  
  • Home
  • Affordable Care Act
  • Update to IRS 226J Infographic Now Includes IRS Letter 227 [UPDATED]

Articles

Update to IRS 226J Infographic Now Includes IRS Letter 227 [UPDATED]

August 15, 2018 Robert Sheen Affordable Care Act, IRS 226J/226-J
Update to IRS 226J Infographic Now Includes IRS Letter 227 [UPDATED]

2 minute read:

The Affordable Care Act (ACA) is complex. The ACA Penalty Process now being initiated by the IRS is no exception. With 30 days to respond upon receipt of 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.

A new infographic is now available that outlines the process of responding to Letter 226J as well as Letter 227, which the IRS sends in acknowledgment of a Letter 226J response. This infographic can serve as a guide as you set up your internal processes to address this ACA penalty process. The infographic describes the procedure undertaken by the IRS to determine whether an organization has not complied with the ACA, how penalties are calculated, and how you can mount a defense to eliminate or reduce your proposed ACA penalties.

It has been updated with more information on the five versions of Letter 227 that has been released by the IRS. Here is how the IRS describes each version:

Letter 227-J: Letter 227-J acknowledges receipt of the signed agreement Form 14764, ESRP Response, and that the ESRP will be assessed. After issuance of this letter, the case will be closed. No response is required.

Letter 227-K: Letter 227-K acknowledges receipt of the information provided and shows the penalty has been reduced to zero. After issuance of this letter, the case will be closed. No response is required.

Letter 227-L: Letter 227-L acknowledges receipt of the information provided and shows the ESRP has been revised. The letter includes an updated Form 14765 (PTC Listing) and revised calculation table. The ALE can agree or request a meeting with the manager and/or appeals.

Letter 227-M: Letter 227-M acknowledges receipt of information provided and shows that the ESRP did not change. The letter provides an updated Form 14765 (PTC Listing) and revised calculation table. The ALE’s can agree or request a meeting with the manager and/or appeals.

Letter 227-N: Letter 227-N acknowledges the decision reached in Appeals and shows the ESRP based on the Appeals review. After issuance of this letter, the case will be closed. No response is required.

You can see the new information on the IRS website by clicking here.

Our updated infographic explains the entire process of how to respond to Letter 226J and any action required from receiving one of the versions of Letter 227. Click here to download a printable version.

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 with more than 30,000 Letter 226Js already issued by the IRS since last November representing more than $4.3 billion in penalty assessments for the 2015 tax year alone. More Letter 226Js and Letter 227s 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.

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
Update to IRS 226J Infographic Now Includes IRS Letter 227 [UPDATED]
Article Name
Update to IRS 226J Infographic Now Includes IRS Letter 227 [UPDATED]
Description
The IRS has released more details on the five versions of its Letter 227
Author
ROBERT SHEEN
Publisher Name
The ACA Times
Publisher Logo
The ACA Times
Short URL of this page: https://acatimes.com/ghw
Robert Sheen

Robert Sheen

Esq., is Editor-in-Chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

ACA ComplianceACA Penalty ProcessAffordable Care ActESRP ResponseForm 14764IRSLetter 226JLetter 227Letter 227-JLetter 227-KLetter 227-LLetter 227-MLetter 227-NPenalties
Related Articles How to Leverage Your Workforce Data to Meet DEI Goals How to Leverage Your Workforce Data to Meet DEI Goals
Related Articles An Employer’s Guide to Navigating the DEI&A Landscape An Employer’s Guide to Navigating the DEI&A Landscape
Related Articles Governments, Investors, & Litigators Are Focusing More on ESG Governments, Investors, & Litigators Are Focusing More on ESG
Related Articles Administration Predicts Lower ACA Enrollment by Robert Sheen  •  
Related Articles IRS Eases Rules on Hardship Exemptions by Robert Sheen  •  
Related Articles HHS Awards $36 Million To Health Centers by Robert Sheen  •  
Subscribe

Popular Posts

  • California Individual Mandate Penalties Will be Issued in 2021
  • Biden’s Affordable Care Act Advancements are Underway
  • What Employers Need to Know About the 2020 ACA 1095-C Codes
  • Employers May Face Additional Challenges with 2020 ACA Reporting
  • Five Resources Essential for ACA Compliance in 2021
  • Most Frequently Asked ACA Questions for Employers and Individuals
  • Taxpayers (Including Employers) Have the Right to the Challenge IRS
  • The IRS is Issuing ACA Penalty Letter 226J for 2018

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (126)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (82)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

 

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: The Recipe for Successful ACA Compliance

Trusaic News

Our Story

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!