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.