Affordable Care Act Penalty letters are making the rounds once again. The IRS is sending out new Penalty letters, this time for 2017 enforcement of the Affordable Care Act. In addition to assessing penalties for not offering coverage or if employees went to the exchange and received subsidies, they are now also sending out penalty assessments, enforcing the rules for Timely and Accurate Filing for the required Employer filings. These are referred to as IRS Letter 972CG penalty letters. These penalties are if the filings were not submitted on time or if the employer was large enough , they had to submit electronically to the IRS. They are also cross referencing corporate tax returns to see if there are control groups who would be considered 1 employer under the ACA and did not complete filings or did not provide proper coverage to employees which would trigger Penalty A or B of the Affordable Care Act for Employers. I attached an actual letter a client has received, dated 8/5/19.
We have seen employers in New York, Pa, Tx and Illinois receive penalty letters recently in the past week or so.