Keeping Employers Out of the Penalty Box

Keeping Employers Out of the Penalty Box

Applicable Large Employers (ALEs) have now learned exactly how serious the IRS was that they comply with the Section 4980H of the Affordable Care Act, (AKA the employer mandate) as the infamous IRS 226J letters arrived in employer’s mailboxes during the past many months.

The penalties assessed in the IRS 226J letters are built on information filed by employers on their Forms 1094-C and 1095-C. It is now crystal clear that employers need a quality compliance partner like ETC to make sure their forms are filed timely, and are complete and accurate, to ensure ALEs are fully in compliance with the ACA.

The Law Offices of Haff & Raggio, PLLC have been busy defending these cases over the last 18 months.  Their efforts and use of the ETC systems have saved 138 employers over $22 million to date.  The cost of this defense work is pennies on the dollar.

Happening Today

The IRS continues to enforce the ACA and is now issuing Letter 5699 which requests the employer to explain why they have not filed the 1094-C/1095-C forms and demands that they be filed in short order.  If an ALE ignores this request, the IRS is now issuing Letter 5005-A/Form 886-A which assesses proposed penalties for the failure to file and distribute for past years.

The IRS is not messing around with ACA compliance obligations and the Law Office of Haff & Raggio along with the ETC systems is here to assist.  ETC is one of very few TCC filers who have the ability to file past years’ 1094/1095 Forms with the IRS.  Coupled with the legal expertise, ETC can safely say it has you covered.

What an employer should do and how an employer should respond is covered here.



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