• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Pridgeon & Zoss, PLLC

Just another WordPress site

  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Home / Audits / To avoid costly IRS audit, respond to pings from ACA exchange
  • Home
  • Firm Overview
    • Review Us
  • Meet Our Attorneys
  • Tax Law Services
    • CP504 Notice in MN
  • Professional Referrals
  • Our Required Retainer Deposit & Fees
  • Blog
  • Contact Us
Call
Contact
Blog

To avoid costly IRS audit, respond to pings from ACA exchange

The failure of the new Congress and administration to fulfill on the pledge to repeal and replace the Affordable Care Act undoubtedly leaves many with “question mark” text bubbles dancing in their heads. Republicans in Washington say the issue is not dead, but for now, the existing law remains in place.

Because of that, experts say now is not the time to turn a blind eye when the government informs you that you are in violation of ACA provisions. Failure to comply could mean an IRS audit, which could be costly to a Minnesota or Wisconsin business, so swiftly responding to notices is recommended.

Those with experience in this relatively young area of the law know that when a company receives an exchange notice, it typically means it is considered a large employer as identified under the ACA and that one of its employees has applied for health coverage through the health care exchange. Large employers are supposed to offer coverage to workers that meets minimum standards and is “affordable.”

If a worker at a big enough company receives a premium tax credit to put toward exchange coverage, the employer is required to share some of the cost by paying a penalty to the IRS. That’s when notice goes out. Fortunately, there are ways to successfully appeal notices and show that the business has complied with the law. Following are a few key suggestions.

  1. Swift response. Quick action after receiving notice helps stall possible adverse audit action down the road.
  2. Keep solid employee records. Complete and accurate data rules the day. It also should be in an easy-to-access database format that can generate clear reports showing hour and payroll information by employee.
  3. Enlist third-party help. If collection and analysis of employee data is outside of your wheelhouse, turn to a reliable outside expert for help. They can generate necessary reports while you and your workers focus on conducting business.
  4. Stay responsive. Appeals can take time. Help them along by adopting an attitude of providing more information as opportunities present themselves.

Health care might seem to be a realm apart, but IRS involvement under the law keeps it in on tax turf.

On Behalf of Pridgeon & Zoss, PLLC Apr 13 2017 Audits

Primary Sidebar

Do Not Delay Responding to a Tax Notice

Name(Required)

Practice Areas

Tax Disputes

  • Tax Litigation
  • Audits
  • Tax Appeals
    • Appealing a Levy Action

Business & Payroll Taxes

  • Trust Fund Assessments
  • Complying with Sales and Use Tax Laws

Self-Employed

  • No Taxes Withheld

Outstanding Balances

  • IRS Collections and Currently Not Collectible Status
  • Settlement Options
    • Offers in Compromise
    • Installment Agreements

Latest Blogs

What is the IRS dispute resolution process for businesses?

April 9, 2021

Your Self-employed Tax Obligations

July 10, 2020

Options for paying outstanding business taxes

May 11, 2020

Preparing your business for a tax audit

February 27, 2020

The IRS Looks To Crack Down On Virtual Currency Tax Compliance

January 17, 2020

Footer

Edina Tax Law Office

7301 Ohms Lane, Suite 420
Edina, MN 55439

Telephone: 952-835-8320

Fax: 952-835-0201

St. Anthony Tax Law Office:

2812 Anthony Lane S, Suite 200
St. Anthony, Minnesota 55418

Telephone: 612-455-8948

Pridgeon & Zoss, PLLC provides legal counsel for clients in Minnesota and Western Wisconsin

© 2022 Pridgeon & Zoss, PLLC. All Rights Reserved.

Disclaimer | Site Map | Privacy Policy