IRS Notice CP504J is an urgent notification sent to employers indicating a serious delinquency in paying the Employer Shared Responsibility Payment (ESRP) under the Affordable Care Act (ACA). This notice signifies a looming penalty which can amount to as much as $500,000, demanding immediate attention.
What Triggers Notice CP504J?
Notice CP504J is issued when previous attempts to collect an assessed ESRP have been unsuccessful. This notice represents one of the final reminders before the IRS takes more severe collection actions, which may include levying company assets.
Essential Actions Upon Receiving Notice CP504J
Upon receipt of Notice CP504J, employers must promptly address the following:
- Thoroughly review the notice to understand the penalty amount and the underlying non-compliance issues.
- Contact the IRS directly to discuss payment options or to clarify any misunderstandings that might have led to the issuance of the notice.
- Consider seeking advice from tax professionals or legal advisors to navigate the resolution process effectively.
Preventative Measures to Avoid Future Notices
Employers can take proactive steps to prevent future penalties and the issuance of notices like CP504J:
- Ensure ongoing compliance with ACA requirements by maintaining accurate and comprehensive health coverage records.
- Utilize tools like ACA-Track to manage and monitor ACA compliance across all employee categories effectively.
- Stay informed about any changes in ACA legislation that may impact employer responsibilities.
For more information on managing ACA penalties and maintaining compliance, visit ACA-Track’s service descriptions.
