“They reduced our ESRP from 300k to zero”
When CD Manufacturing received Letter 226-J from the IRS, I was surprised and shocked by the penalty amount assessed. It was over $300,000 due in thirty days! My first call was to our CPA questioning the validity of the assessment and what we could to mitigate it. After some research, our CPA and our insurance broker both provided the same suggestion, contact First Capitol Consulting. We called them and they immediately provided answers to my many questions and an accurate and very reasonable estimate for their services. Since we only had 30 days to respond to the notice provided by the IRS, it was critical that we got the help we needed and fast. First Capitol did not disappoint.
Immediately after signing on with First Capitol, they performed a comprehensive redetermination of our 2015 information filings and identified many discrepancies that had been overlooked during the respective filing season. Due to complications from a merger in 2015, our full-time headcount was confusing and overstated in our filing by about 200% which resulted in an exponentially higher penalty assessment. Once this error was corrected, First Capitol then showed us how to report it to the IRS claiming an exemption from not offering insurance to 80 full-time employees for the 2015 reporting year. This was something we did not know was available to us.
At the end of their final analysis, First Capitol let us know that we were actually not subject to any employer shared responsibility payments. They reduced our ESRP from >$300k to zero. After submitting the response and corrected filings to the IRS, we received confirmation from the IRS stating they agreed with the new returns. This was truly a remarkable professional experience. The team at First Capitol Consulting provided an astounding service for which we are very grateful. If your organization receives Letter 226-J, make sure you notify First Capitol, these people are the best in the business. They have proven to be an incredibly resourceful ACA solution experts and I highly recommend their services.