Several months ago, the IRS said it would begin issuing penalties for employers who did not comply with the Employer Shared Responsibility Mandate under the Affordable Care Act. Now, the IRS is making good on its promise. The IRS has started mailing notices of potential liability to employers. Under section 4980H of the ACA, Applicable Large Employers (ALEs) must offer health plans with Minimum Value Coverage to full-time equivalent employees and their dependents. ALEs who fail to report offers of coverage are subject to penalty.
Employers who receive notices of penalties for the 2015 reporting year have the opportunity to appeal before the IRS requests payment. Employers also have the option to request an extension within 30 days of receiving the notice from the IRS. If employers are unsure of ACA compliance status for the 2015 reporting year, they should monitor the mail for a notice and be prepared to act swiftly upon receipt.