February 1, 2024

What to do when you get an ACA Penalty Assessment from the IRS?

Receiving a notice from the IRS concerning penalties for Affordable Care Act (ACA) filing errors can be unsettling. It’s a situation many businesses find themselves in, often due to complex filing requirements or misinterpretations of the ACA regulations. If this scenario sounds all too familiar, you might be facing significant penalties and wondering where to go from here. Fortunately, there’s a path to resolution, and it begins with understanding the importance of corrective action and expert guidance.

The Challenge of ACA Compliance

At the core of the ACA’s Employer Mandate, Applicable Large Employers (ALEs) — businesses with 50 or more full-time or full-time equivalent employees — are tasked with offering Minimum Essential Coverage that is both affordable and meets minimum value standards to at least 95% of their full-time staff. Failure to comply can lead to hefty penalties if even one employee receives a premium tax credit for purchasing coverage through the Health Insurance Marketplace.

Given the precise calculations required to determine full-time equivalents (FTEs), the affordability of offered coverage, and other intricate details, it’s easy to see why filing mistakes happen. But when the IRS notifies you of a penalty, it’s critical to act promptly and efficiently.

Stepwise Approach to Resolving IRS Notices for ACA Penalties

  1. Review the Notice Carefully: Before panic sets in, take time to thoroughly review the notice. The IRS has acknowledged backlogs and errors in the past, so verify the notice’s accuracy and relevancy to your business.
  2. Assess Your Documentation: This is where the discrepancies often lie. Compare the IRS’s findings against your own records — everything from 1094-C/1095-C filings to the specifics of the coverage offered. Discrepancies or overlooked details could be the key to challenging the penalty.
  3. Consider Expert Intervention: While it’s possible to navigate these steps on your own, the complexities of ACA compliance and the potential financial stakes make partnering with a specialist service highly advantageous. This is where Tesseon can help.

How Tesseon Can Help

Tesseon specializes in providing tailored ACA filing and compliance solutions. If you’re faced with IRS notices for ACA-related penalties, we can offer a comprehensive service that includes:

  • Error Correction and Refiling: Utilizing your employee information, we meticulously correct any errors in your 1094s/1095s filings, ensuring every data point adheres to ACA requirements.
  • Expert Filing and Notice Resolution: With extensive experience in ACA compliance, we manage the entire refiling process on your behalf and work directly with the IRS to resolve any notices, aiming to reduce or eliminate penalties.
  • Ongoing Compliance Support: The best defense against future penalties is preventive action. Tesseon provides ongoing support, helping you maintain ACA compliance through continuous monitoring and consulting.

Turning Setbacks into Success

Facing IRS penalties for ACA filing errors can be overwhelming, but it doesn’t signify the end of the road. With Tesseon’s expertise and dedicated support, what starts as a significant challenge can turn into an opportunity to strengthen your ACA compliance strategies. By addressing current penalties and laying the groundwork for future compliance, you safeguard your business against similar pitfalls moving forward.

Embracing the chance to correct past mistakes not only demonstrates your commitment to compliance but also positions your business for long-term success in navigating the complexities of the ACA. With Tesseon by your side, you can transform this daunting task into a manageable process, ensuring your business remains on the right side of ACA regulations.

Take the First Step Towards Resolution

If an IRS notice has landed on your desk, the time to act is now. Reach out to Tesseon for a comprehensive, stress-free solution to your ACA filing challenges. Together, we can turn the tide on penalties and set a course towards seamless compliance.

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Disclaimer: The information provided on this blog page is for general informational purposes only and should not be considered as legal advice. It is advisable to seek professional legal counsel before taking any action based on the content of this page. We do not guarantee the accuracy or completeness of the information provided, and we will not be liable for any losses or damages arising from its use. Any reliance on the information provided is solely at your own risk. Consult a qualified attorney for personalized legal advice.

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