Benjamin Davis

We use: Attention Shan Montoya So far, we have had a 100% success rate of having all 226J ESRPs reduced to zero. (Though it's not solely because of the salutation used, I'm sure) Thanks,

Chaz, the issue is different here. ACA reporting done incorrectly will get a 226J. (Or if it is done correctly, but an employee goes on the exchange and received a PTC). When you do not respond to the 226J, you get a CP220J, which the IRS demands payment. This situation is in regards to late filing. Kmhaab was asking "Since we got a 5699, and responded - we have filed the ACA information late... and we know there is a penalty for late filing, so can I expect a penalty" It has been my experience, that even though you respond to a 5699 by submitting a late ACA filing - doing so will not result in penalty. At least, I have not seen any yet. If you ignore the 5699, you get a 5698, asking for a response in 15 days. If you ignore this as well, you get a a CP215, which is a notice where the IRS demands payment. I hope this has provided clarity. Thanks

Yes. I can confirm that the IRS sends out 5699 for failure of an ALE to file. If that is ignored, they will send a Notice CP-220J. This informs the company that the IRS has charged an ESRP. (All noticed in the 5699 and 226J refer to proposed penalties). Benjamin Davis | vCard Vice President Diversified Administration, Inc. ACA, 5500, Wrap Documents, COBRA, FSA, HRA O: (954) 983-9970 x102 | F: (954) 983-9695 6600 Taft Street, Suite 304, Hollywood, FL 33024

It would depend on how the actual plan functioned. If the 3 plans ceased to exist at the end of that plan year, and only 1 remained, the 2 plans may be amended to be finalized. The DOL will see the new benefits on the continued plan, so it won't raise any questions. If the Wrap document became effective after the renewal date, it would be advisable to file a short plan year for whatever period fell after renewal, but before the implementation of the Wrap document. Do not try to "pull a fast one", and amend prior filings as final, if there was time after renewal, but before the Wrap document was implemented. That's the surest way to get the attention of an auditor. I hope this helps to answer your question. If not, please let me know. I've set this thread to alert me if you reply. Benjamin Davis | Vice President Diversified Administration, Inc. ACA, 5500, Wrap Documents, COBRA, FSA, HRA O: (954) 983-9970 x102 | F: (954) 983-9695 6161 Washington St., Hollywood, FL 33023

The IRS determines what plan year a benefit falls into, using the date of service. So since the service was for 2019, that is when the claim must be applied to. (This is actually one of the things the IRS did that actually makes sense. Often, people need to get the FSA reimbursement, before they can actually pay the service provider. Because of this the IRS does not look at date of payment - but instead, focuses on the date(s) of service. Benjamin Davis | vCard Vice President Diversified Administration, Inc. ACA, 5500, Wrap Documents, COBRA, FSA, HRA O: (954) 983-9970 x102 | F: (954) 983-9695 6161 Washington St., Hollywood, FL 33023

I would definitely see about amending that 2013 filing. If at any time between then and now, they hit that BOY>100 count again, you would want to amend the 2013 filing to indicate 4R to suspend the filing, and then on the resumed filing, use code 4S. As that filing would be late, you would also want to enroll them in the DFVCP. If the BOY never hit 100 again, then I would amend the 2013 filing to indicate it was a final filing, so the DOL knows they should not be expecting another filing for that EIN/PN combination. Please let me know if you have any other questions. Benjamin Davis Vice President Diversified Administration, Inc. ACA, 5500, Wrap Documents, COBRA, FSA, HRA O: (954) 983-9970 x102 | F: (954) 983-9695 6161 Washington St., Hollywood, FL 33023

Can you please provide a source for this, as it is contrary to what I currently understand to be the case. Aside from the July 11th, 2016 fact sheet from https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/fs-proposal-to-modernize-and-improve-the-form-5500-filed-by-employee-benefit-plans.pdf and the news release the following day (https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/fs-proposal-to-modernize-and-improve-the-form-5500-filed-by-employee-benefit-plans.pdf ) the only other thing I found on the DOL website was a March 2017 report to Congress about Self Funded Plans, which again reference the Schedule J and new Form 5500 updates (from https://www.dol.gov/sites/default/files/ebsa/researchers/statistics/retirement-bulletins/annual-report-on-self-insured-group-health-plans-2017.pdf )

Good Afternoon Diajen, Congratulations on your new job. As a Self-Fudned ALE, your employer was required to file in 2015. If your employer failed to file, they likely received a Letter 5699. This letter says you need to submit your filing in 30 days. Extensions are almost always granted. The very first thing I would do, even before you finish reading this post, is to call 877-571-4712. That's a special IRS number, specifically for dealing with Letter 5699 (and Letter 226J, which the IRS sends if you did your ACA filing incorrectly). The people at this line are very helpful. Explain your situation, and ask for an extension. It is VERY likely they will grant it. Once you have gotten the extension, give me a call at 954-983-9970 x102. I will assist with triage on this issue. Determine if you also did not file for the 2016 and 2017 reporting years, as well as your 2018 filings, which are due early next year. Because the extensions are only for 30 days, time is of the essence. I look forward to hearing from you soon. Benjamin Davis Vice President Diversified Administration, Inc. ACA, 5500, Wrap Documents, COBRA, FSA, HRA Main: (954) 983-9970 | Fax: (954) 983-9695 6161 Washington St., Hollywood, FL 33023