First Capitol Consulting Will Help Eliminate or Reduce
Employers' IRS Letter 226J Affordable Care Act Penalties
ACA Penalty Reduction Service Fills the Operational and Data Gaps
that Led to Employers Being Assessed Significant IRS Tax Penalties
LOS ANGELES, CA — December 20, 2017 — First Capitol Consulting is extending its ACA compliance services to employers who need help eliminating or reducing Affordable Care Act (ACA) penalty assessments issued by the IRS.
Many employers were blindsided in November when they unexpectedly received ACA penalty assessments from the IRS for ACA information filings for the 2015 tax year. Some of these IRS Letter 226J notices contained penalties in the millions of dollars. More are expected to be issued.
First Capitol’s ACA Penalty Reduction Service uses the expertise the company has developed in migrating, consolidating and validating the data critical to submitting successful ACA filings to help organizations who have been assessed ACA penalties by the IRS to eliminate or reduce these penalties to the greatest extent possible. “Our approach fills the gaps that result from operational mishaps and data-related errors that lead to these IRS penalty notices,” said Robert Sheen, President and CEO of First Capitol. “It’s a service that payroll and software vendors don’t provide.”
Through this new service, First Capitol works with employers directly or in concert with their insurance brokers, CPAs or law firms. Included in the services are:
- A review of the accuracy of the client’s methodology for its ACA filings for the 2015 reporting year with the objective of eliminating the IRS proposed Employer Shared Responsibility Payment (“ESRP”).
- A comprehensive redetermination of the ACA information reported in the Client’s 1094-C and 1095-C forms for the 2015 reporting year with the objective of minimizing, if not eliminating, the ESRP.
For employers who have not yet received an IRS penalty notice, but are concerned that they might, First Capitol will review filing information and documentation from their 2015 and 2016 IRS filings to identify potential problem areas that need to be addressed. This is particularly important because the threshold for offering healthcare coverage for full-time employees increased from 70 percent in 2015 to 95 percent in 2016 and thereafter. Any potential issues in processing data for ACA filings can be identified and addressed for the upcoming IRS ACA filings for the 2017 tax year.
“We continue to see employers and vendors not properly managing the data gathering and consolidation process for the information that goes into these ACA filings submitted to the IRS,” said Sheen. “They are unknowingly putting themselves at risk for multiple years of tax penalties.”
First Capitol Consulting, Inc., is a data and analytics company with a focus on optimizing client performance around tax and regulatory compliance. We provide robust data and analytic solutions for HR, tax credits, regulatory compliance, and data intelligence services.
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