IRS 4980h penalty response

Does the IRS Claim Your Client Owes a 4980H Penalty?

The IRS has begun sending letters (Letter 226J) to employers who it believes owe a penalty under the ACA §4980H employer shared responsibility rules for benefits provided in 2015.

We believe that many of the proposed IRS assessments are due to employer reporting errors, not actual violations of §4980H requirements. Benefit Comply has a team of §4980H and ACA reporting experts who can help an employer understand the Letter 226J and provide assistance in developing the employer’s response to the IRS. The process includes:

  1. Discovery

    A Benefit Comply Consultant will examine the IRS Letter 226J and other relevant documentation.

  1. Recommendation

    The Consultant will make a determination as to how much, if any, of the proposed IRS 4980H penalty actually applies and make a recommendation to the employer.

  1. Preparation

    The Consultant will assist in preparing the response to the IRS and all necessary supporting documentation for the employer (or their representative) to submit to the IRS.

  1. Response

    The Employer is responsible for submitting the final response package to the IRS.


[btnsx id=”5180″]  Employers must act quickly. They have only 30 days to respond to the IRS.


Case Study: We have already been engaged by a number of employers to help them formulate their response to the IRS letter. Our first client was a 120-employee grocery store that the IRS claimed owed over $150,000 for a §4980H(a) violation. We were able to determine that the employer had made mistakes on their 2015 1094-C, and does not actually owe the penalty!