FLB Law Saves Client from Six-Figure IRS Penalty and Assists with Compliance

FLB Law Managing Partner Stephen P. Fogerty recently represented a client that was fined $275,000 for noncompliance with the Affordable Care Act (ACA) mandate, which requires employers to offer employees at least one medical plan option that provides “affordable,” “minimum value” coverage.

 In researching the alleged violation, Steve uncovered that his client had met the ACA requirement of offering healthcare coverage to its employees, but they completed the required annual reporting to the IRS incorrectly, triggering the IRS’s penalty. On behalf of the client, FLB sent a letter to the IRS explaining the situation, which resulted in the complete revocation of the fine. FLB worked with the client to complete the necessary paperwork correctly to ensure they complied with the reporting requirements of the ACA mandate.

 Businesses should consult with their attorney annually to ensure they comply with the ACA as, among other things, the “affordability threshold” can change, which can lead to noncompliance and unnecessary and costly fines.