IRS Begins Issuing Penalty Letters to Employers Who Fail to Comply with ACA Reporting Requirements
The Internal Revenue Service (IRS) has begun sending letters to employers notifying them that they may be subject to penalties for failure to comply with the employer mandate provisions of the Affordable Care Act (ACA). These letters relate to the 2015 tax year, the first year in which applicable large employers (ALEs) were required to provide evidence of employer-provided health coverage to their employees (via the filing of IRS Forms 1094-C and 1095-C). The IRS had been delaying penalty assessments for a few years, saying it needed more time and funding to implement its compliance systems. Now that this issue has been seemingly resolved, the task of enforcement has begun.