H&W Sample Invoice for Section 4980H Penalties!

Last week we blogged about the IRS releasing the first round of 226J letters, which communicate to Applicable Large Employers that they have been identified as potentially liable for a Section 4980H penalty!  This week, we have learned that the IRS has released a sample CP 220J Notice, which is what follows the 226J letter, requesting payment!

Notice CP 220J will instruct how to make payment, if any is due.  Note: ALEs will not be required to include the employer shared responsibility payment on any tax return that they file nor will they be required to make payment before the notice and demand for payment is received.

For additional information relating to the employer shared responsibility payment process, there is a more in-depth write-up on our blog or to read about it straight from the horse’s mouth, you can go to the IRS webpage.