The IRS has recently begun issuing and re-sending Letters 5699 for Tax Year 2018 for non-filers. Their Enforcement Office located in Ogden, UT was temporarily closed in March 2020 in response to the COVID-19 state stay-at-home orders. The office was originally scheduled to reopen on July 15th but recently reopened in late August.

IRS Letters: What are they in response to? 
Two common IRS notices are Letter 5699, which is sent to organizations without record of IRS filing, and Letter 226J, a penalty notice for non-compliance with the ACA Compliance and Reporting requirements. The IRS has a record of sending these notices out a year or longer from the end of the applicable tax year. For example, TY2017 Letter 226Js were mailed out in June 2019!

What does this mean for you and your organization? 
Your organization may have received an IRS Letter 5699 or 226J for TY2018 before the IRS office temporarily shut down. We've heard from and supported employers who have received notices and want to get them resolved ASAP but haven't been able to respond because of the shut down. They're stuck with the notice and have had to make space in their budgets for potential penalties. We're here to help!

BenefitScape recommends priortizing the response as soon as possible to clear your backlog and start fresh. As TY2020 ACA Compliance and Reporting deadlines are fast approaching, we're here to assist you in responding to and resolving these IRS notices sooner rather than later. We have an excellent history of IRS penalty remediation for employers receiving these notices. We offer complete ACA Compliance and Reporting services, including Penalty Risk Assessments and remediation support.

If you've received an IRS notice and need assistance with responding, contact us immediately! Learn more and reach out to us at (508) 655-3307 or info@benefitscape.com