IRS Releases New Employer Mandate Enforcement Web Page

IRS Releases New Employer Mandate Enforcement Web Page

The Internal Revenue Service (IRS) is now in employer mandate enforcement mode, and as part of those efforts, they have unveiled a new webpage to help applicable large employers (ALEs) understand the Letter 227 series, which some employers may receive from the IRS this year.  If the IRS believes an ALE owes an employer mandate penalty, then they will notify the business by sending Letter 226-J, a penalty assessment.  Many companies have already received IRS assessment notices related to their 2015 coverage offerings, but more will be coming as the IRS wraps up its 2015 enforcement efforts and begins on 2016.

The new web page applies to businesses that have already been assessed a penalty and have replied back to the IRS to either dispute their proposed assessment or to pay it.  The new web page covers the Letter 227 series, which are potential responses an employer may receive from the IRS once they reply to their Letter 226-J penalty notice using Forms 14764 and 14765. There are five possible responses an employer might get from the IRS.  The new web page explains all five potential answers in depth and outlines the next steps for affected employers in the IRS’s penalty assessment, appeals and resolution processes.

If the IRS contacts your business regarding compliance with the employer mandate, please do not hesitate to reach out to your Kistler Tiffany Benefits Consultant.