Since 2017, the IRS has been actively enforcing penalties against Applicable Large Employers (ALEs) related to Form 1094-C and 1095-C reporting requirements using the following letters:
- Letter 226J: Proposing employer shared responsibility penalties under Code Section 4980H based on information reported by the ALE in its Form 1094-C or 1095-C filings and information reported by the Marketplace regarding individuals who received subsidized coverage.
- Letters 5699 and 5005-A: Proposing civil penalties under Code Sections 6721 and 6722 for failure to file Forms 1094-C and 1095-C as required.
- Letter 972CG: Proposing civil penalties under Code Section 6721 for specific filing failures of Forms 1094-C and 1095-C (e.g., failure to timely file and failure to file electronically).
Haff & Raggio, PLLC, has represented numerous ALEs related to these penalties providing savings of more than $100 million to date. Through the strategic partnership with the ETC Companies, Haff & Raggio, PLLC, can extensively review payroll and benefits data, if needed, to mitigate penalty exposure effectively and efficiently. Services include:
- Full representation before the IRS, including serving as power of attorney and directly communicating with the IRS on the employer’s behalf
- Preparation and submission of response letters
- Preparation and filing of any necessary Forms 1094-C and 1095-C