Benefits Vet Posted April 30, 2021 Share Posted April 30, 2021 Let's say a company that qualifies as an ALE simply did not provide health insurance to all FTEs from 2015-2018. Just didn't do it. Company just received ESRP assessment (total $ in the low 6 figures) for 2018. We are assuming that the IRS will look at prior years. If IRS assesses similar penalties for those years, it will put the client out of business. Will the IRS negotiate the amount of the penalty when the issue is NOT whether it was calculated correctly? Any thoughts on talking to IRS to get a settlement for all years of liability and not just 2018? Any other ideas or tips? Thanks!!! Link to comment Share on other sites More sharing options...
Chaz Posted April 30, 2021 Share Posted April 30, 2021 Bring in benefits counsel. Link to comment Share on other sites More sharing options...
Luke Bailey Posted May 3, 2021 Share Posted May 3, 2021 I assume IRS is also asserting penalties for failure to file 1095's and 1094-c's? Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
Benefits Vet Posted May 4, 2021 Author Share Posted May 4, 2021 16 hours ago, Luke Bailey said: I assume IRS is also asserting penalties for failure to file 1095's and 1094-c's? Not yet. But, I have found out that the IRS position is that they only go back three years so 2018 should be the only year for which there will be liability. Link to comment Share on other sites More sharing options...
LSB Posted July 15, 2021 Share Posted July 15, 2021 Be careful with that. Although they may not initially look back, they've explicitly stated a formal position that ACA penalties have no statute of limitations, so they may surprise the client later on. I know you said there isn't an issue that the penalty wasn't calculated correctly, but it's still worth reviewing whether anything can be done to reduce the penalty...the variable hour rules sometimes provide a lot of relief. The IRS, to its credit, recognizes that their information gathering is imperfect, and agents I have worked with have been very reasonable in recalculating the penalty. Benefits Vet 1 Link to comment Share on other sites More sharing options...
Insurnacegirl555 Posted Sunday at 12:36 AM Share Posted Sunday at 12:36 AM On 5/4/2021 at 12:51 PM, Benefits Vet said: Not yet. But, I have found out that the IRS position is that they only go back three years so 2018 should be the only year for which there will be liability. What ended up happening with this client? Link to comment Share on other sites More sharing options...
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