IRS Notice 972CG is issued to employers who have failed to comply with the reporting requirements of the Affordable Care Act (ACA) by either not filing or incorrectly filing Forms 1094-C and 1095-C. This notice informs employers of the penalties incurred due to these failures and outlines the steps necessary to address the issue.
Why You Received Notice 972CG
Notice 972CG may be issued for several reasons, including:
- Failing to file the required forms by the prescribed deadline.
- Submitting incomplete or incorrect information on Forms 1094-C or 1095-C.
- Failing to use electronic filing when required, depending on the number of forms filed.
Penalties Specified in Notice 972CG
The penalties for non-compliance can vary depending on the nature and extent of the violation. They typically include:
- A monetary fine for each form that was filed late or incorrectly.
- Increased penalties for willful neglect of filing requirements.
Responding to Notice 972CG
Upon receiving Notice 972CG, employers should:
- Review the notice carefully to understand the specific violations and penalties assessed.
- Assess whether the penalties can be abated by showing reasonable cause for the failures.
- Respond to the IRS by the deadline provided in the notice, either paying the penalty or providing evidence to dispute the assessment.
- Correct any errors on filed forms as instructed by the IRS to avoid future penalties.
Preventing Future Notices
To prevent future instances of Notice 972CG, employers should:
- Ensure timely and accurate filing of all ACA-related forms.
- Utilize reliable ACA compliance software or services, such as ACA Track, which can help manage and automate the filing process to adhere to IRS regulations.
- Regularly train staff responsible for tax and ACA filings on the latest compliance requirements and updates.
Further Assistance
For additional guidance on addressing IRS Notice 972CG and ensuring compliance with ACA filing requirements, visit the Understanding Your IRS Notice or Letter page on the IRS website. This resource offers valuable information on how to handle notices and correct filing issues.
