IRS Notice 972CG is issued to employers who fail to meet the reporting requirements under the Affordable Care Act (ACA). This notice pertains to penalties for incorrect or late filings of ACA-related forms, specifically impacting the accuracy and timeliness of submissions like Form 1094-C and Form 1095-C.
Why You Might Receive Notice 972CG
Employers may receive this notice as a result of errors in filing or failing to meet filing deadlines. Common issues include incorrect taxpayer identification numbers (TINs), missing or inaccurate information, and late submission of the required forms.
Understanding the $270 Penalty
The $270 penalty, applicable per return, can accumulate quickly, emphasizing the need for accuracy and punctuality in compliance filings. The total penalty amount depends on the number of incorrect or late forms submitted.
Responding to Notice 972CG
To address Notice 972CG effectively, employers should:
- Review each cited error or late filing noted by the IRS.
- Prepare and submit corrections as required by the notice.
- Contact the IRS if there are disputes or clarifications needed regarding the penalties.
- Seek professional advice to ensure full compliance and understanding of ACA reporting requirements.
Preventing Future Notices
To avoid future penalties and ensure ongoing compliance, consider the following strategies:
- Use reliable ACA compliance software like ACA-Track to ensure accuracy and timeliness of all ACA-related filings.
- Conduct regular audits of ACA reporting processes to identify and rectify potential errors before submissions.
- Stay informed about changes in ACA regulations and filing requirements.
For more insights on effective ACA compliance strategies and avoiding penalties, visit ACA-Track’s service descriptions.
