If your business has received an IRS Letter 5699, it means the IRS believes your company may not have complied with the Affordable Care Act (ACA) reporting requirements, particularly in relation to Forms 1094-C and 1095-C. This letter typically requests additional information or clarification to ensure your filings are complete and accurate. Ignoring this letter or failing to respond appropriately can lead to significant penalties, so it's essential to address it promptly.

Why You Need Help with IRS Letter 5699

IRS Letter 5699 is not just a routine inquiry—it’s a critical request for compliance. The IRS may issue this letter when it believes that your business has failed to file the required ACA forms or that there are discrepancies in your filings. If not properly handled, this situation can result in substantial financial penalties for your business. That’s where ACA Compliance Solution Services comes in.

With our expert team of ACA compliance professionals, we guide businesses through the necessary steps to resolve issues stemming from IRS Letter 5699. We work closely with you and your advisors, including insurance brokers, CPAs, and legal teams, to ensure the correct information is provided to the IRS and any penalties are minimized or eliminated.

The ACA Compliance Solution Services Advantage

Our service is designed to streamline the process of responding to IRS Letter 5699 and reduce any potential penalties. Here's how we can help:

• Rapid Response: With a 30-day deadline to respond to the IRS, it’s crucial to act fast. ACA Compliance Solution Services ensures a quick and thorough response to keep your business in good standing with the IRS.
• Comprehensive Expertise: Our team includes experienced ACA compliance professionals who are well-versed in IRS reporting requirements and penalties. This expertise allows us to provide you with an effective strategy to address any gaps or errors in your reporting.
• Long-Term Compliance Strategy: Beyond resolving the immediate issue, we help you develop a long-term plan to prevent future compliance problems and ensure that your business stays on track with ACA regulations.

Our Service Offerings

ACA Compliance Solution Services offers a full range of services to help your business respond effectively to IRS Letter 5699 and reduce penalties. Our approach includes:

 1. Diagnosis and Gap Identification

• Review Letter 5699: We thoroughly review the letter and any related IRS correspondence to understand what information the IRS is requesting.
• Assess ACA Filings: We evaluate Forms 1094-C and 1095-C for accuracy and completeness, ensuring all necessary data is included.
• Identify Discrepancies: We examine your data for any errors or omissions that may have triggered the letter and could lead to penalties.
• Request Extension if Necessary: If needed, we help you request an extension of the 30-day deadline to respond to the IRS.

 2. Strategy Design and Penalty Assessment

• Assess Liability: We analyze the potential penalties and determine the best course of action to minimize or eliminate them.
• Apply Safe Harbor Provisions: If applicable, we will apply the appropriate safe harbor provisions to reduce or avoid penalties.
• Update ACA Filings: If discrepancies are found, we help you update Forms 1094-C and 1095-C, ensuring they meet all IRS requirements.
• Develop a Compliance Strategy: We create a plan for long-term ACA compliance to prevent future issues.

 3. Response Preparation and Submission

• Prepare Form 14764 (ESRP Response): We help you complete the necessary IRS form to respond to the letter and address the penalties
• Compile Supporting Documentation: We gather and organize all relevant documents and information to support your case and clarify any discrepancies.
• Submit the Response: We ensure that your response is submitted to the IRS correctly and on time, following all required procedures.

Potential Penalties for ACA Non-Compliance

The penalties for failing to comply with ACA reporting requirements can be significant. Businesses may face penalties for:

• Failure to Offer Coverage: If your company did not offer health insurance coverage to at least 95% of full-time employees (or the required percentage for the applicable year), you could be subject to penalties.
• Failure to Offer Minimum Value or Affordable Coverage: If the coverage offered did not meet the ACA’s minimum value or affordability standards, penalties may apply.

How ACA Compliance Solution Services Can Help

If you’ve received IRS Letter 5699, it’s essential to act quickly. Our team at ACA Compliance Solution Services specializes in ACA reporting and penalty reduction. We provide expert guidance to ensure that you understand the IRS's requests, correct any filing errors, and avoid or reduce penalties.

By working with our team, you can rest assured that your response to the IRS will be thorough, accurate, and timely, helping your business resolve any compliance issues and avoid unnecessary penalties. Contact ACA Compliance Solution Services today to get the expert assistance you need to address IRS Letter 5699 and stay compliant with ACA regulations.