United Benefit Advisors Insight and Analysis Blog

IRS Releases Information Letter on Employer Shared Responsibility Penalties under the ACA

By Karen Hsu, Director of Compliance at United Benefit Advisors
  Nov 7, 2019 9:45:00 AM

The Internal Revenue Services (IRS) released an information letter responding to an inquiry of whether employer shared responsibility penalties (ESRPs) may be waived or reduced based on hardship or other factors and whether the IRS will extend the transition relief for employers with fewer than 100 employees.Shared_Responsibility_ACA

The letter notes that the law does not provide for waiver of ESRPs. While the IRS provided several forms of transition relief in 2015 and 2016, no transition relief is available for 2017 and future years. Although the January 20, 2017, executive order Minimizing the Economic Burden of the ACA Pending Repeal directs federal agencies to exercise authority and discretion to waive, defer, and grant exemptions from the ACA provisions, the ACA’s legislative provisions are still in force until Congress changes them.

Topics: ACA, IRS, compliance recap, ESRPs