Action must be taken within 30 Days of Letter 226-J
Letter 226-J is the initial Letter issued to Applicable Large Employers (ALEs) to notify them that they may be liable for an Employer Shared Responsibility Payment (ESRP). The determination of whether an ALE may be liable for an ESRP and the amount of the proposed ESRP in Letter 226-J are based on information from Forms 1094-C and 1095-C filed by the ALE and the individual income tax returns filed by the ALE’s employees.
What you need to do
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Answers to Common Questions

Why did I receive this Letter?

The IRS used the information you provided on Forms 1094/5-C and determined that you are potentially liable for an ESRP.

Where did the IRS get the information used to compute the ESRP?

The IRS used form 1094/5-C filed by the ALE and the individual income tax returns of your full-time employees to identify if they were allowed a premium tax credit.

Is this Letter a bill?

No, the Letter is the initial proposal of the ESRP.

What do I need to do?

Review the Letter and attachments carefully and complete the response form by the date provided.

What do I do if the information is wrong or I disagree?

Follow the instructions in the Letter to provide corrected information for consideration by the IRS. The IRS will reply with an acknowledgement Letter informing you of their final determination.

Do I have appeal rights?

Yes, the acknowledgement Letter that you receive will spell out all your rights, including your right to appeal.

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