Ascertain the data gaps using the optimal IRS penalty reduction services

 For complying with the IRS protocols, the US Federal Government certifies the IRS or Internal Revenue Service to dispatch the vital Letter 226J as a legal notice to all the ALEs or Applicable Large Employers. This letter is directed to those employers failing to abide by the necessities of the Employer Mandate Provisions under the ACA or Affordable Care Act for the 2015 and 2016 taxable years. 

Such awful Letter 226-J from the IRS penalty reduction services needs to be presented to the IRS with the ACA stipulated penalty within a month. In this context, it will be sensible for the ALEs to hire highly adept and licensed ACA Compliance professionals for addressing appropriately the IRS Penalty Reduction Service by simplifying the operational gaps. 

What Are The Varied Kinds Of IRS Penalties Charged For Non-Compliance Issues By ALEs?

According to the ACA protocols, there are two prime ACA employer mandate forfeiture, namely Penalty A and B. In this context, the Penalty A or the ‘Sledge Hammer Penalty’ comes under section 4980H(a) and is levied on those ALEs, failing to offer the minimum essential health insurance cover to at least 95% of their full-time equivalent employees in any stipulated month. It is to be noted that the penalty for 2021 is $225 per month or $2,700 annually compounded by all full-time equivalent employees. 

Again, Penalty B, or the ‘Tack Hammer Penalty’, comes under section 4980H(b), which happens to be the smaller of the two penalties. It applies to those ALEs, who do not fall under the Penalty A. The penalty refers to every full-time equivalent employee registered in the Sponsored Exchange cover, wherein the minimum essential coverage is not met, it is costly, or the cover never offers the minimum value to the eligible employees. This fine is not compounded by all full-time equivalent employees. 

What Is The Relevance Of The IRS Letter 226J?

IRS dispatching the dreaded Letter 226J happens to be the introductory letter offered by IRS to the ALEs, informing them about their responsibility for an ESRP or Employer Shared Responsibility Payment, due to non-compliance issues relating to the employees’ health insurance coverage. This letter only specifies a proposed penalty and is not an invoice. Nevertheless, to determine if the specific ALE is accountable for the ESRP, along with the stipulated penalty fees mentioned in Letter 226J, the compliance specialists need to check the Forms 1094-C and 1095-C filed by the ALEs, along with the IT return filed by the employees deployed under that particular ALE. 

In this context, Letter 226J mentions whether the IRS has evaluated the particular health insurance coverage offered by the employers for their staff’s claims to obtain a premium tax credit. Hence, the awful Letter 226J is dispatched to only those ALEs failing to meet minimum employer-shared liability for health coverage of eligible employees for the given assessable year. Thus, this letter is just an estimate and does not specify the final penalty fees. 

How The Professionals Of ACA Compliance Solution Aid The ALEs To Resolve The Letter 226J?

To find a quick resolution to the urgent Letter 226J, the concerned ALEs can also take expert advice from the professionals dealing with non-compliance issues of ACA. In this context, they can opt for the authentic enterprise of ACA Compliance Solution Services, with years of expertise to resolve the data gaps for the penalty notice from the IRS. The hired compliance experts should thoroughly read Letter 226J, and should also ask the ALEs to provide a clarification if needed. 

In the process, the licensed professionals should readily note the cutoff date for replying to the IRS, which is typically 30 days. Thus, to compose a justified and fast-tracked response to Letter 226J, along with the Review form 14765, the ACA compliance experts deliver all the required computations to the concerned ALEs for sending the details to the IRS. Moreover, the reply letter can be strategized with optimally-practiced knowledge and a coordinated process, as the compliance experts function in tandem with law firms, CPAs, and insurance brokers. 

Final Verdict

Acknowledging the distinct benefits rendered by the compliance professionals from ACA Compliance Solution Services for streamlining the IRS penalty reduction services, and sustaining the IRS protocols, the ALEs must hire such specialists to resolve the penalty concerns within a month.