NIMBLE ACA AUDIT SERVICES
Did You Know that the IRS Conducts ACA Non-Compliance Audits With One in Every Four Companies?
Hand-in-hand with the cost cutting initiatives of the new administration is revenue generation. And one of the hot topics at the IRS is ACA compliance because they know that there is a wide swatch of organizations that are simply not complying with the regulations. The IRS sees it as an ideal opportunity to generate revenue.
Employers who fail to comply with ACA's Employer Mandate can face annual penalties as high as $275,000 for every 100 employees after the first 30. Plus, the IRS can use its levy power to satisfy outstanding ACA penalties. Certain states are also in the ACA compliance game.
Many organizations find compliance incredibly time consuming and that the rules are complex. Moreover, the information gathering and reporting timeframe is in the heart of tax season. Nimble Reporting mitigates much of these headaches however, there are still companies that need our expertise when it comes to undergoing an ACA Compliance Audit by the IRS.
With an audit, your organization may receive one of the following letters:
IRS Letter 5699: Employer Non-Filing of ACA Reporting
This is issued when the IRS believes an employer failed to file Forms 1094-C/1095-C. It requests confirmation of prior filing, and absent of that requires timely submission of required filing or an explanation for non-filing.
IRS Letter 226-J: Employer Shared Responsibility Payment (ESRP)
This is issued when the IRS determines an employer may owe a penalty under the ACA's Employer Mandate. Much like other penalty notices from the IRS, it outlines assessed penalties and provides instructions on how to respond.
It is critical that you respond promptly to avoid violations and penalties—typically 90 days from the date of the letter. The response should include all applicable documentation and accurate information to support your case. Employers may dispute proposed penalties with the correct supporting evidence.
Additionally, the IRS penalties are not a deductible business expense.
How We Can Help…
Nimble Reporting provides professional service firms with a resource to easily navigate an ACA Compliance Audit. Our expertise helps your trusted advisor relationships and builds trust through proactive service.
Risk is mitigated by helping your clients address IRS letters, reducing potential penalties. You also are helping your clients remain proactively informed and compliant with ACA regulations.
It also can add revenue to your practice. By adding ACA Compliance Audits to your toolbox, you can add as much as $15,000-$20,000 as a resolution fee for each tax year in question. And while these IRS fines are not deductible, the resolution fees are.
What Do We Deliver?
Expert guidance and support in preparing employee data including payroll and health plan details, as well as proper filing in the IRS ACA data portal. Since 2014, ACA requires myriad data points and incomplete or missing data can result in non-compliant reporting. Our team can identify reporting errors, provide strategic responses to IRS inquires and minimize potential penalties through proper documentation.