Challenge the IRS Assessment

Challenge the IRS Assessment

We believe that many of the 226J proposed employer assessments will be applied due to mistakes made in employer reporting, rather
than to an actual violation of a §4980H requirement.

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First Steps An Employer Should Take

First Steps An Employer Should Take

Follow this flowchart for a quick overview of the steps an employer should take now and throughout the challenge process. Remember, the employer has only 30 days from receipt of the letter to respond.

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Frequently Asked Questions

Frequently Asked Questions

Find answers to the most common questions employers have about the IRS letter 226J, the assessed penalties, and the process of challenging the IRS assessment.

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Contact Us To Get Started!

Who We Are:

Benefit Comply has a team of §4980H and ACA reporting experts who can help an employer understand the Letter 226J and provide assistance in developing the employer’s response to the IRS.

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Case Studies:

We have already been engaged by a number of employers to help them formulate their response to the IRS letter. Our first client was a 120-employee grocery store that the IRS claimed owed over $150,000 for a §4980H(a) violation. We were able to determine that the employer had made mistakes on their 2015 1094-C, and does not actually owe the penalty!

In another case, a manufacturing company with over 500 FTEs was assessed a penalty exceeding $800,000. We were able to identify errors in the employer’s 1094 reporting that, once corrected, eliminated the (a) penalty.  We then were able to identify errors in the employer’s 1095 reporting and assisted the employer in making corrections to the form 14765 in order to communicate those errors back to the IRS. This brought their total §4980H(b) penalty liability down to $55,000. 

In yet another case, a bakery with 400 employees was assessed a §4980H(a) penalty exceeding $700,000. We were able to help the employer communicate reporting errors back to the IRS and completely eliminate their penalty liability.