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IRS prepares to send ACA penalty letters by year’s end

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The IRS has officially announced they are sending out Employer Shared Responsibility (ESR) penalty letters. The first batch of letters are based on the 2015 tax year, and they plan to post this group of letters by the end of December 2017. You will find a sample of the lengthy letter here.

The letter is not an immediate demand for payment; instead, it gives the employer a chance to engage with the IRS with information and gives employers a firm response date, which is key. The employer is requested to respond by that date to explain their view of the ESR penalty calculations within the letter. If the employer disagrees, the employer is asked to describe their position and supply different data to support it.

For questions or assistance regarding the ESR or other aspects of health care law, call the HKP HR consulting department at 888-556-0123 or email hrconsulting@hkpayroll.com.