The IRS Announces Plan to Enforce ACA Employer Mandate Penalties

On November 8, 2017, the IRS announced that, for the first time, it would begin enforcement of the employer mandate under the Affordable Care Act (i.e., the assessment of tax penalties against large employers failing to provide affordable, minimum value health coverage to substantially all employees). The initiation of active enforcement efforts now comes as a surprise, as many anticipated that the IRS would not begin such efforts under the Trump administration.

Over the next few weeks, affected employers will receive an assessment letter to all employers the IRS believes owe ANY penalty under the ACA’s employer mandate. From guidance we have received, this could be due to:

• Anticipated and appropriately assessed tax
• Unanticipated, but appropriately assessed tax
• ACA reporting errors

Any employer anticipating they COULD be receiving an assessment should be on the lookout. If you receive an assessment letter, ACT QUICKLY.

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We’re here to help, please contact Carol Parda-Ziolko at (888) 322-2524 ext. 427 or by email.