Imagine receiving an IRS penalty for $10,000 or $50,000 or $150,000.
These are the penalties being issued to businesses for failing to comply with the ACA rules.
In the final days of 2018, the IRS started issuing notices to assess penalties against employers that failed to file Forms 1094-C and 1095-C or to furnish 1095-C to employees under IRC Section 6721 and 6722 for the 2015 and 2016 tax years.
These penalties are separate from the IRS penalties under IRC Section 4980H for failing to offer the required healthcare insurance.
The IRS is monitoring the number of W-2’s filed by a business and using that information to create a list of potential ACA non-filers. If you are on that list you may receive IRS Letter 5699 which requests information as to why you have not filed the required forms. The wrong answer is going to get you a penalty in the ranges you see above.
Each year, Kallas has offered ACA filing services to employers who are required to file. By filing you are avoiding the worst of the penalties.