New Jersey Technology & Manufacturing Association



Compliance teams have been inundated with calls and emails from clients regarding ACA penalty letters coming from the IRS, representing thousands upon thousands of dollars. And rather than slowing down, the pace of outgoing penalty letters is set to increase substantially.

In fact, with renewed focus, upgraded technology and agent support, the IRS has significantly ramped up efforts to assess penalties for non-compliance with the ACA employer mandate (also known as Employer Shared Responsibility Payment, or ESRP).

  • IRS data shows about 1 in 6 Applicable Large Employers are currently at risk for compliance action.
     300,000+ ALE’s identified by the IRS in the 2015 tax year reporting alone.
  •  $2.5+ million IRS investment dollars put toward enforcement efforts. Reports digitally cross- referenced by IRS to identify compliance issues
    (W2s, 5500s, 1040s and others).
  • June 2019, the IRS began sending Letters 226J for proposed 2017 ESRP penalties.
  • IRS increasing efforts to identify potential non-filers via Letter 5699.

Thanks and any questions please do not hesitate to call Tom at Walsh Benefits 732-559-1156