Is Letter 226J, the final notice employers will receive from the IRS confirming their non-compliance with the employer mandate?
527 views | Last modified 12/31/2020 4:31:50 AM EST | Added by ACAwise Team

No!  The Letter 226J is the initial notice, the IRS will send to Applicable Large Employers who did not comply with the ACA employer mandate during the given plan year based on the information they provided in Form 1095-C. 

If you are an ALE and have received a 226J letter from the IRS, you should take immediate action within the required 30 days of the letter date to avoid unwanted penalties.

It is very important for you to maintain documents and records after reporting to the IRS to demonstrate compliance.  

Final Determination Notice  220J

Once you receive Letter 226J from the IRS, you should respond with documentation that you have corrected the data previously reported on the Forms 1095-C.  The IRS will complete their review and send you a final determination Notice CP220J. 

This will be the final notice confirming the final penalty amounts being charged, by month. The Notice CP220J may also indicate that no penalty is being charged based on the IRS’s review of the data or documentation you provided in response to the initial Letter 226J.

If you have failed to comply with the IRS in the past, get in touch with us, we offer prior year filing and work with you to create a plan for maintaining your IRS compliance before you get to the point of receiving a Notice CP220J from the IRS.