IRS Letter 5699 is sent to employers suspected of not complying with the Affordable Care Act’s (ACA) reporting requirements. This letter serves as a request for missing information, specifically targeting entities that have failed to file the required Forms 1094-C and 1095-C.
Why Letter 5699 Is Issued
The IRS issues Letter 5699 when it does not receive the ACA forms that an employer is obligated to file. The absence of these forms can trigger IRS concerns about potential non-compliance with the ACA’s employer mandate.
Key Steps Upon Receiving Letter 5699
Receiving Letter 5699 requires immediate attention to avoid penalties. Employers should:
- Confirm receipt of the letter and review the specific requests or deficiencies noted by the IRS.
- Gather the required forms and any supporting documentation that explains the filing oversight.
- Submit the missing Forms 1094-C and 1095-C promptly as instructed by the letter.
- Consult with a tax advisor or legal expert to ensure full compliance and to discuss potential penalties for late filing.
Preventing Future Issues with IRS Letter 5699
To prevent future issues related to ACA reporting, employers can take several proactive steps:
- Establish a reliable and timely reporting system using tools like ACA-Track.
- Regularly review filing deadlines and ensure that all required forms are submitted on time.
- Stay informed about any updates or changes in ACA reporting requirements to ensure ongoing compliance.
For additional resources and support in managing ACA compliance and reporting, explore ACA-Track’s services.
