IRS Sends ACA Shared Responsibility Letters (226-J)

Employers who chose to “pay” instead of “play” in 2015 can expect to receive a letter from the IRS.

The IRS recently began sending initial letters to employers who may be liable for an Employer Shared Responsibility Payment (ESRP) under the ACA. Employers who chose to “pay” instead of “play” in 2015 can expect to receive Letter 226-J.

The IRS used the information provided on Forms 1094/5-C to determined which employers were potentially liable for an ESRP.

If you receive this letter, it will be important that you respond accordingly and in a timely manner.

  • Read your letter and attachments carefully. These documents explain the ESRP process and how the information received affects the computation.
  • This is not a bill. The letter is the initial proposal for the ESRP.
  • You must respond. The letter fully explains the steps to take if you agree or disagree with the proposed ESRP.

More information about this letter can be found on the IRS website.

 

As always, do not hesitate to contact your GKG representative with any questions.