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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Updates on IRS Collection Efforts

Updates on IRS Collection Efforts

Read current news and updates on the IRS collection efforts from our consultants who are responding to the latest IRS communications on behalf of employers

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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:

In one case, the employer failed to indicate that they had met the offer of coverage requirements on their form 1094-C and also made some coding mistakes on their 1095 -Cs. This resulted in an assessed penalty from the IRS in the amount of $1.7 million. We helped the employer successfully appeal the assessment and the IRS dropped the penalty entirely.

In a similar case, the employer was assessed penalty from the IRS in the amount of $1.2 million. Again, we helped the employer successfully appeal the assessment and the IRS dropped the penalty entirely.

In another case, the employer chose to offer coverage only to management and therefore did not offer to enough full-time employees during 2015 to avoid the penalty under §4980H(a). However, employer failed to claim transition relief for employers with 100 or more FTES to reduce the full-time employee count by 80 (rather than 30) for each month when calculating the penalty, and also over reported the full-time employee counts for each month. The IRS assessed a penalty of $170,000. We worked with the employer to correct the full-time employee counts for each month and claim transition relief. As a result, the penalty was reduced to $54K.