The reporting deadline for the Affordable Care Act has passed, but many employers may be wondering how they will know whether they owe a penalty.
According to the IRS, employers will be notified if one or more employees has received a premium tax credit. “The IRS will contact employers to inform them of their potential liability and provide them an opportunity to respond before any liability is assessed or notice and demand for payment is made,” the IRS states.
Any contact made by the IRS for a given calendar year will not occur until after the due date for employees to file individual tax returns for that year claiming premium tax credits and after the due date for applicable large employers to file the information returns identifying their full-time employees and describing the coverage that was offered (if any).
The IRS has not released any additional information regarding the procedures, but we will continue to keep you informed.