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Affordable Care Act Penalty Assessment: Received an IRS 226-J Notice?


If your business received a 226-J letter from the IRS, you’re not alone. The 226-J is the initial letter issued to Applicable Large Employers (ALEs) to notify them that they may be liable for an ACA penalty. An ALE is any company that employs, on average, 50 or more full time employees or full-time equivalent employees for the prior calendar year.

Below is an example of the 226-J notice one of our clients received. We were able to build a successful strategy that eliminated their penalty.



The ACA requires ALEs to document that they offered health insurance to employees and that it met minimal essential coverage, minimum value, and affordability thresholds. Failure to do so for any ALE company that has employees who receive government subsidies for coverage will result in a penalty known as the Employer Shared Responsibility Payment.


If your business received a 226-J notice, the IRS believes your company has NOT complied and owes penalty payments under IRS Section 4980H (a) and/or (b).


Please send us an email at info@hcmunlocked.com or call us at (561) 419-8409 to book a free consultation to review your 226-J notice.


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