Employers need to be aware that the IRS recently revised one of its FAQ documents to outline the issue penalty demand letters.
Employers should be on the lookout for receiving Letter 226J.
The letter includes:
• A summary table itemizing each month an employer may be liable for a payment
• A response form, Form 14764, “ESRP Response”
• Form 14765, which will list by month an ALE’s assessable full-time employees
• A description of actions the ALE should take to dispute the letter’s findings.
Letter 226J will include a due date for the employer’s response. It will generally be 30 days from the date of the letter. If an employer doesn’t respond or doesn’t respond timely, the IRS will issue a notice and demand for payment.
There are no sample letters that are available just yet. The IRS states that Letter 226J for calendar year 2015 will be issued in “late 2017.” For more information concerning the 226J letter, see link below.
For additional information, questions or concerns, please feel free to contact David Mordo at firstname.lastname@example.org or 732-837-9229