The CP220J Notice is an important notification from the IRS directed at employers regarding the Affordable Care Act (ACA) compliance. This notice details the Employer Shared Responsibility Payment (ESRP) assessments based on information from the employer’s previous year filings and the health coverage offered to employees.
What is the CP220J Notice?
The CP220J Notice serves as a formal statement of the penalty due from employers who did not comply with ACA’s coverage mandates. It outlines the specific reasons for the assessment and provides detailed calculations of the penalties imposed.
Responding to the CP220J Notice
Receiving a CP220J Notice requires a careful and prompt response:
- Review the details in the notice to understand the basis of the penalty calculations.
- Verify internal records against the IRS calculations to ensure accuracy.
- Contact the IRS or consult with a tax advisor if there are discrepancies or if clarification is needed.
- Respond to the IRS within the given deadline to address any issues or to arrange for payment.
Preventative Measures to Avoid Future CP220J Notices
To prevent receiving future CP220J Notices and to maintain compliance with the ACA, employers should:
- Ensure timely and accurate filing of all required ACA forms, including Forms 1094-C and 1095-C.
- Regularly update knowledge and practices in response to changes in ACA regulations.
- Use comprehensive ACA compliance solutions like ACA-Track to keep track of coverage offered and ensure all reporting is correct.
For more detailed information on navigating ACA compliance and the specifics of responding to IRS notices, consider visiting ACA-Track’s service descriptions.
