Responding to IRS Letter 226J

Letter 226J is the letter sent by the IRS to notify an employer that they may be responsible for paying the employer shared responsibility penalties for failure to provide adequate penalties. First, it's important to note that the deadline for responding to the letter is 90 days from the date printed on the letter (not 90 days from the date the employer receives the letter). After the employer determines whether it agrees or disagrees with the IRS assessment, a response is made using Form 14765. The employer should include any supporting documentation that the IRS will need to determine whether the response is accurate. Once the IRS has reviewed the response, they will send another Letter 226 (Versions J-N) depending on their conclusion. For more information on the ACA employer shared responsibility penalty, visit Tax Facts Online. Read More: Link to Q8875. Note: Q is updated.