In addition to the IRS ACA Penalty Assessment Letter 226J, the IRS has begun sending letters to certain employers to request information about whether they satisfied their ACA reporting obligations for 2015 and 2016. Specifically, the letter is entitled “Request for Employer Reporting of Offers of Health Insurance Coverage” or “Letter 5699.”
The IRS is now sending these letters to employers it believes were ALEs (applicable large employers with more than 50+ full-time equivalent employees) that may have failed to submit the required ACA Forms (1094-C or B, 1095-C or B). In particular, Letter 5699 requests that the employer confirm the name and Employer Identification Number it used when filing the Forms along with the date such filing was made. Letter 5699 also reminds employers that there are penalties for failing to file the Forms.
Employers that receive IRS Letter 5699:
- Must respond to Letter 5699 within 30 days of receipt.
- Should carefully review the Forms that they filed (if any) for the year indicated in the letter.
- ALEs that have not filed the Forms for the 2016 reporting year can provide them to the IRS with their response to Letter 5699. Alternatively, ALEs that have not filed the Forms can commit to filing them within 90 days of the date of the letter. In either case, the ALE must also explain the reason for the late filing.
Employers that have specific questions or require specific advice regarding the best response to Letter 5699 should engage a qualified attorney.