United Benefit Advisors Insight and Analysis Blog

Understanding Clients’ IRS Play-or-Pay Penalty Assessment Letter

By Danielle Capilla, Senior VP of Compliance and Operations, United Benefit Advisors
  Apr 26, 2018 4:46:07 PM

Thursday April 26

Recently, clients may have contacted you with questions about Letter 226-J, which they would have received from the Internal Revenue Service (IRS) during or after the end of 2017. These letters stated that your clients might owe money, either because the IRS didn’t offer health coverage to enough of its full-time employees, or because the health coverage that it did offer wasn’t affordable (or minimum value).

Why did your clients receive this letter, what does it mean, and what is the best way for you to respond to their queries? For more clarity on Letter 226-J, request UBA's Compliance Advisor, Understanding Your Client's IRS Play-or-Pay Penalty Assessment Letter.

Topics: Compliance Advisor, benefits compliance, health insurance policy, Health Coverage Tax Credit, tax law, ACA penalties, play or pay requirements