ACA Penalties Don’t Go Away

aca penalties

Don’t Get Caught With Non-Compliance

The IRS released a “Field Notice” on February 24 th , 2020 stating that there is no statute of limitations for
the assessment of an Employer Shared Responsibility Payment (“ESRP”) under Internal Revenue Code
Section §4980H. This means that employers who were wishing to avoid ACA reporting for a few years
after its initial release in the hopes that it would “go away”, now have a statute stating they are on the
hook indefinitely.

The IRS can assess a penalty under section code §4980H to any employer with 50 or more full-time
employees (also known as Applicable Large Employers) who fail to offer Minimum Essential Coverage
providing Minimum Value to at least 95% or more of their full-time employee population. This means
now more than ever it is important for employers to comply with the ACA in its entirety, as the standard
“3 to 7 year” rule with normal audit and tax filing (normally under section code §6501), does not apply
to the ACA.