2018 ACA Information Returns Series 1 Volume 13
How-To Correct Information Returns (Part Four)
Haga clic AQUÍ para la versión en español de esta publicación.
The previous post in this series discussed how to electronically report corrections to the IRS. This post will conclude Series 1 and will consider how to deal with penalty assessment letters you may receive from the IRS.
Click HERE to view the attached instructions for this section of the process. You may also download the complete set of instructions HERE. También puede descargar el conjunto completo de instrucciones AQUÍ.
How-to Deal with Letter 226J
The IRS will examine your information return and the tax returns of your employees and send you a Letter 226J. This letter will explain what information was reported that led to the assessment of an Employer Shared Responsibility Payment (ESRP), or penalty payment. You can now respond to this letter and dispute or correct any information it contains.
All communication with the IRS at this point is direct and in writing. The IRS will not ask you to reply by sending any electronic information from the HRM system. If requested, you can Correct individual 1095-C transactions in the HRM system and then print and return them to the IRS. Similarly, if the IRS requests a corrected 1094-C Form, use the Corrected check box, then print, sign and return it with your documentation and written response.
It is important to remember that your reply is URGENT. You will generally have 30 days or less to formulate a response and compile whatever supporting documentation the letter requests. Follow the instructions in the letter closely and maintain good communication with your IRS contact.
How-To Handle Letters 227
After you respond, the IRS may then send you one of a number of different Letters 227. These letters will indicate the status of your assessment and what you must do to respond. The information provided in the attached instructions is taken from the IRS website and may be subject to change. We recommend that you refer back to their website for assistance any time you receive written communication from the IRS.
Need To Review?
The separate sections of instructions that have been attached to the individual blog posts throughout this series are also being consolidated into one linked document for easy navigation and review. When available, please click HERE to download the complete set of instructions on How-To Process ACA Information Returns Using Datatech HRM Software.
We hope that this series of posts proves beneficial as you process 2018 ACA Information Returns in early 2019. Datatech is here to help HRM Software users make the best use of their investment. If you have questions regarding any post in this series, please call or email Datatech Support.
Phone: (800)833-8824 Email: hrsupport@datatechag.com