What is penalty notice 972CG?
505 views | Last modified 1/11/2021 12:21:34 PM EST | Added by ACAwise Team

The IRS issues Penalty notice 972CG with proposed penalties under section 6721 to employers who fail to comply with any of the below ACA filing requirements.

• Must File ACA Forms 1094/1095 to the IRS on-time
• Must file using the correct media 
• Must file with accurate TIN/Name 
• Must file return in a valid format (processable)

Information in the Penalty Notice 972CG

The notice will provide the following information to an employer.

• The explanation for the proposed penalty and how to respond to the notice.
• A record of each submission considered in the penalty, including the form type, date received (if not submitted on time), whether the returns were original or corrected, the transmitter control code (for electronic filers), and the type of penalty that applies (late, incorrect TINs, etc.)
• A list of ACA returns filed with missing or incorrect name/TIN combinations.
• Summary of the proposed penalty imposed under IRC Section 6721.
• The response page and payment/correspondence slip.

If an employer received the penalty notice 972CG, they must respond to the notice within 45 days, indicating whether they agree or disagree with the IRS's proposed penalty. 

If no response is received within the defined time period from the employer, the proposed penalty will be assessed by the IRS by issuing a balance due notice (CP15 or CP215).

Employers can also avoid receiving the penalty notice 972CG with the proposed penalty from the IRS by choosing ACAwise. When you get in touch with ACAwise, we help you with all validations, including TIN matching, USPS address validation, IRS Business Rules validation, and IRS ACA XML Schema validation, before transmitting your Forms to the IRS. This ensures that your forms are transmitted accurately and on-time with the IRS.