IRS will not waive penalties for employer mandate under ACA
In a series of information letters, the IRS has clearly indicated that it won’t waive employer mandate penalties under the Affordable Care Act. For example, in a letter from the IRS to House Representative Bill Huizenga dated April 14, 2017 related to a question from an applicable large employer, it was made clear that the IRS did not interpret the presidential executive order as providing penalty relief or relief from ACA information return filing requirements, nor are there any provisions in the law which provide for a waiver of employer shared responsibility payments.
“The recent Executive Order Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal (January 20, 2017), directed federal agencies to exercise authority and discretion permitted to them by law to reduce potential burden imposed by the ACA. The Executive Order does not change the law; the legislative provisions of the ACA are still in force until changed by the Congress, and taxpayers remain required to follow the law and pay what they may owe. For additional information on the ACA Executive Order and the current tax filing season, please visit https://www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals.”
Three other letters from the IRS confirm this stance. Employers are still expected to follow the law in relation to the ACA or be subject to a shared responsibility payment (aka “penalty” or “excise tax”). Need help getting started? Contact us at firstname.lastname@example.org or at (888) 786-6162 for information. Our website has an abundance of ACA educational information as well.