Sample Letter 227 Added to IRS Website, Closes Loop in ESRP Inquiries

Recently, the IRS added a new page to their website – Understanding Your Letter 227 – offering new samples of Letters 227. These five samples (Letters 227-J through -N) show the various responses that the IRS is using to acknowledge ESRP inquiries and provide employers with next steps regarding proposed ESRP amounts noted on the Letter 226-J sent to that employer. Additionally, the IRS has offered helpful sections on this page such as “What you need to do,” “You may want to,” and “Answers to Common Questions” to further support employers in receipt of a Letter 227.

This update to their processes and website is another indicator that the IRS is continually refining and improving the collection and management of ESRPs (ACA penalties/fines).

Is your organization confident that your current ACA management provider could support you through an IRS inquiry? If not, now may be the time to consider a change.

Equifax can provide end-to-end offerings to complement our award-winning ACA Management Solution, including:

To learn more about our ACA Management offerings, please contact our specialized ACA team today.