Employer Mandate Penalty Collection Efforts

The IRS began assessing §4980H (Employer Mandate) penalties late in 2017 by sending Letter 226Js. Letters are being received by applicable large employers who appear to owe a penalty based on the self-reporting submitted via a Form 1094-C and 1095-Cs for the 2015 calendar year, the first year that §4980H went into effect.

Rather than sending out all Letter 226Js at once, the IRS seems to be sending them out in batches; some employers have just received their letter in the last couple of weeks. In other words, just because an employer has not yet received a letter, that does not necessarily mean it’s not still on its way.

In addition, once the IRS finishes collection efforts for 2015, it is likely to begin the collection process for 2016, and 2017, and beyond.

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