The IRS CP215 Notice is a crucial document for employers, serving as a notification of assessed penalties related to non-compliance with the Affordable Care Act (ACA). This notice is part of the enforcement actions taken by the IRS to ensure adherence to healthcare coverage requirements set by the ACA.
What Triggers a CP215 Notice?
A CP215 Notice is typically issued after the IRS has determined that an employer has either not offered adequate health coverage to its employees or has failed to comply with other ACA mandates. The notice outlines the penalties and provides details on how they were calculated based on the employer’s reporting.
Steps to Address a CP215 Notice
Upon receiving a CP215 Notice, employers should:
- Review the notice carefully to understand the specific reasons for the penalty.
- Assess their internal records and health coverage offerings to identify any discrepancies between their reporting and the IRS’s findings.
- Contact the IRS or a tax professional to discuss the notice, especially if there are grounds for disagreement or clarification is needed.
- Arrange for payment of the assessed penalties, or file an appeal if inaccuracies are found in the IRS’s assessment.
Preventing Future CP215 Notices
To avoid future penalties and ensure ongoing compliance with ACA requirements, employers can:
- Utilize ACA compliance tracking tools like ACA-Track to maintain accurate records of health coverage and employee information.
- Regularly review ACA updates and changes to ensure all health coverage policies meet the required standards.
- Conduct internal audits of ACA reporting processes to detect and correct discrepancies before submitting to the IRS.
For additional resources on managing ACA compliance and understanding IRS notices, visit ACA-Track’s service descriptions.
