The IRS is preparing to assess penalties to employers that may have been subject to Form 1095 reporting in 2015, but failed to file forms with the IRS. It is sending out Letter 5699 asking for the employer response within 30 days. Employers have the option to (1) state forms were filed another name/EIN, (2) attach completed forms or a time frame for doing so, or (3) state it was not an applicable large employer in 2015 (averaging 50+ employees in 2014).

Keller worked with our applicable large employer clients to timely file their 2015 and 2016 forms. Small employers may get a letter if the employer’s size is unclear to the IRS. Note that failure to file is subject to a large penalty (up to $3 million/year). Although the proposed American Health Care Act could repeal the employer mandate penalties for not offering affordable coverage, the associated Form 1095 reporting is still required.

If you receive a Letter 5699, please contact your Keller account team for assistance.