Did you receive an

IRS Letter 226-J?

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A 226-J letter is the initial penalty notice from the IRS indicating that an employer has been identified by the IRS as having failed to comply with the ACA mandate and may be subject to penalties.

An applicable large employer (ALE) can receive a 226-J Letter.  An ALE is an employer with an average of at least 50 full-time employees and may be a single entity or may consist of a group of entities with common ownership.

If you have received a 226-J letter, the IRS has determined that you may be liable for an Employer Shared Responsibility Payment (ESRP) based on information from Forms 1094-C and 1095-C filed by the ALE as well the ALE’s employees’ individual income tax returns.

An ALE can receive letter 226-J at any time.

Typically, via US mail.

Audit Response
ACA Audit Assistance

Did you receive an

ICE Notice of Intent to Fine?

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Call 585-348-5020 for a free consultation!

It is a communication that includes the result of an I-9 audit and lays out penalties for non-compliance.

Any United States employer with one or more employee(s).

Your organization has gone through an I-9 compliance audit from Immigration and Customs Enforcement (ICE), and they have found reason to assess penalties and fines for non-compliance.

You receive an NIF via US mail.

Paragon has helped clients avoid penalties by providing thorough audits and remediating errors before you get a costly audit notice.
Audit Response NY
I-9 Audit Assistance

Important IRS ACA Audit Letters, Penalty Notices and Forms:

Letter 226-J

The 226-J letter is the initial penalty notice from the IRS indicating that an employer has been identified as having failed to comply with the ACA mandate and may be subject to penalties.

CP220J Notice

This is a notice from the IRS communicating that they charged you an Employer Shared Responsibility Payment (ESRP).

Letter 1865C

This letter is a notice sent to employers if, for whatever reason, the IRS cannot process the Forms 1094-C and 1095-C. Potential reasons include typographical errors, misspelled names, etc.

CP504B Notice

If you receive this notice, you may have an unpaid amount due to the IRS.

Letter 3064C

This letter is issued to inform employers that the IRS has decided on a penalty assessment or to request additional information.

Letter 5699

Letter 5699 is sent when the IRS is inquiring about an employer’s reason for not filing the Forms 1094-C and 1095-C in any given year.

Letter 5698

The IRS sends a 5698 letter after an employer has responded to letter 5699 to request more information or inform the employer of their liability.

Letter 5005-A

This is the penalty notice that follows the IRS’s letter 5699.

CP504B Notice

This notice means that there is unpaid amount due to the IRS.

Notice 972-CG

This is a late penalty notice issued by the IRS to employers that fail to file Forms 1094-C and 1095-C by the appropriate deadline for any given year.

Important ICE
Audit Forms:

Notice of Inspection (NOI)

NOIs can be issued for any reason and officially start the administrative inspection process.  Employers are given at least three days to produce the requested forms and supporting documents.

Notice of Technical or Procedural Failures

Identifies failures found during the administrative inspection process. Employers are given at least ten business days to correct the forms. Uncorrected technical or procedural failures become substantive violations.

Notice of Intent to Fine (NIF)

NIFs are issued for substantive violations, uncorrected technical failures, “knowingly hire” violations, and/or “continuing to employ” violations.

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