Smart Benefits: What to Do if You Get a Shared Responsibility Letter
Monday, February 26, 2018
The letter, according to the IRS, will include an employer shared responsibility payment summary table itemizing the proposed payment by month and indicating for each month if the liability is under section 4980H(a) or section 4980H9(b). It will also include a description of what you should do if you agree or disagree with the payment outlined – and what actions the IRS will take if you don’t respond.
So if you get an IRS 226J Letter, what do you need to do?
- Read the letter carefully. The letter will include instructions for responding in writing, whether you agree with the proposed payment or disagree with part or all of the amount.
- Complete the response form. Whether you agree or disagree with the letter, complete Form 14764.
- Ask questions. If you have questions about the letter, contact the name of the specific IRS employee listed.
- Act quickly. The timeframe in which to respond to the letter is generally 30 days.
- Keep Records. Maintain copies of the letter and any documents you submit in response.
If you reply to the IRS Letter 226, in follow up, you will receive a version of Letter 227, which will provide additional instructions for action you may need to take. If you don’t respond to either Letter 226 or 227, the IRS will assess the proposed payment and send Notice CP 220J and demand for payment, which will include instructions on how to make payment.
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