Employers who have been counting on the IRS to forget about employer shared responsibility payments apparently have run out of luck. The IRS recently revised one of their FAQ documents to outline their upcoming issuing of penalty demand letters.
Employers can look forward to receiving Letter 226J. The letter will include:
- A summary table itemizing each month an employer may be liable for a payment
- A response form, Form 14764, “ESRP Response”
- Form 14765 which will list by month an ALE’s assessable full-time employees
- A description of actions the ALE employer should take to dispute the letter’s findings.
The Letter 226J will include a due date for the employer’s response. It will generally be 30 days from the date of the letter. If an employer doesn’t respond or doesn’t respond timely, the IRS will issue a notice and demand for payment, Notice CP 220J.
Letter 226J can be found here https://www.irs.gov/pub/notices/ltr226j.pdf
Samples of the letters and forms are not yet available for review. However, the IRS states that the Letter 226J for calendar year 2015 will be issued in “late 2017.”
The IRS FAQs that provide details are numbered 55-58 and can be found here.