The IRS has announced that they will be issuing IRS Letter 226-J before year end which will serve as initial notices to employers who may owe Employer Shared Responsibility penalties for tax year 2015.

Here are a few notes to be aware of if one of your employers receives this notice:
-The most important thing to do is read the document thoroughly and respond promptly!
If there is no response by the date printed on the letter, the employer will receive a Notice and Demand for the penalty. The penalty will be subject to lien and levy enforcement and interest will accrue from the date of the Notice and Demand.
-The notice is not a bill. It is an initial proposal of the Employer Shared Responsibility Payment and you respond to confirm if you agree or disagree.
-You have a right to appeal and the letter will detail the process through which to do so.
-Make sure you are clear on whether the employer meets the definition of a large employer for the tax year in question. Below is a link to the IRS page on how to determine the applicable large employer status.

For more information or to answer any questions on this topic, please reach out to brokersupport@martinins.com