ACA Update
October 25, 2017
November 2017
November 8, 2017

New IRS guidance released on November 2, 2017 advises that Employer Shared Responsibility Assessments for tax year 2015, Section 4980H Employer Mandate Penalty under the Affordable Care Act (ACA), will be issued within the next few weeks.

IRS Letter 226J may be issued by the IRS informing ALEs of their potential liability for an Employer Shared Responsibility Payment for tax year 2015. The Letter will include Form 14765 “Employee Premium Tax Credit List” which provides details on full-time employees who were allowed the premium tax credit. If the employer has a discrepancy, Letter 226J will also include Form 14764 ESRP Response and provide details on actions the employer can take usually within 30 days of the issuance date.

If an employer fails to respond, the IRS will access the proposed amount shown in Letter 226J, and issue a Notice and Demand for Payment (Notice CP220J).