Affordable Care Act IRS Letter 5699

FAQs:

1. What is IRS Letter 5699? It is a notice sent to employers who may have failed to file ACA forms 1094-C and 1095-C.

2. Is Letter 5699 a penalty notice? No, it is a preliminary inquiry. Penalties may follow if you do not respond in 30 days.

3. What if I was not required to file? You must respond and explain why you were not an Applicable Large Employer (ALE). 

4. Does the Affordable Care Act have its own definition of "full-time employee"? Yes and it can result in a different number of full time jobs than your company calculates, pushing you into the ALE category.

We are helping companies respond and get ACA filings up to date. Penalties for non-response are up to $270 per missing form, up to $580 per employee for failure to file, and up to $4,320 per employee per year for not offering ACA-compliant coverage.