Press Releases


The IRS Is Actively Issuing Affordable Care Act Penalties to Employers  

Do Employers Know Their ACA Penalty Risk Exposure?


LOS ANGELES, CA — July 26, 2019 — Expect the IRS to become more assertive in efforts to enforce the Affordable Care Act this summer. IRS staff are digging deeper than ever into potential ACA violations, and putting the onus on employers to prove they have complied with the law.


You can learn more about current IRS enforcement of the ACA from First Capitol’s free webinar, IRS Enforcement of the ACA is Intensifying – What You Need to Know to Avoid Penalties.


The federal tax agency is actively issuing notices, such as Letter 5699, Letter 5005A and Letter 226J to employers who have been identified by the IRS as having failed to comply with the ACA’s employer mandate. The penalties being issued to employers range from hundreds to millions of dollars.


First Capitol has services in place to assist employers:


Our Letter 226J Penalty Reduction Service can either significantly reduce or eliminate ACA penalty assessments issued by the IRS to employers for failing to provide qualified offers of insurance to 95 percent of their full-time workers, as defined by the healthcare law.


Our Letter 5005A Penalty Reduction Service can significantly reduce ACA penalty assessments issued for failing to annually file forms 1094-C and 1095-C with the IRS or distribute them to employees, as required by law.


Our ACA Penalty Risk Assessment helps employers identify whether they are at risk of receiving ACA penalties from the IRS before they are issued. The assessment is made at no-cost to employers and can be performed in less than 72 hours.


For more information on these services, visit or contact First Capitol at 213-382-1115 or by clicking here.


About Us

First Capitol Consulting, Inc., combines data and analytics with human expertise to help organizations optimally manage their workforces, identify and minimize risk, and improve financial performance. We provide robust data and analytics solutions for HR, tax credits, regulatory compliance, and data intelligence services. For more information, go to


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Gary Davis