IRS will initially send the Letter 5699 to Applicable Large Employers who have not met the ACA Reporting Requirements under IRC section 6056.
Letter 5699 is issued by the IRS to inquire ALEs for the missing information and the reason for not being compliant with the ACA Reporting under section 6056.
IRS identifies the noncompliant ALEs based on their W-2 forms reported for the calendar year.
The letter 5699 contains the following basic information:
Letter 5699 will have five options listed below and you must respond to one of the options which are applicable to you within 30 days.
I was an ALE for calendar year and already filed Form 1094-C and Forms 1095-C with the IRS using the following name _____________ and employer identification number (EIN) __________ on date ________
I was an ALE for the calendar year and have included my Form 1094-C and Forms 1095-C with this letter. (Do not use this box if you are required to file electronically.) (Explain reasons for late filing below under “Other”)
I was an ALE for the calendar year and will file my Form 1094-C and 1095-C with the IRS using the following name __________ and EIN __________ by date ______ (If more than 90 days from the date of this letter, explain below under “Other”) (Explain reasons for late filing below under “Other”)
I was not an ALE for the calendar year. Explain reasons below under “Other”.
Other (Indicate below or attach a statement explaining why you haven’t filed the required returns and any action you plan to take.)
You must respond to this Letter 5699 before the mentioned time period in the letter.
If you failed to respond with the proper reason, IRS will send you the letter 5005-A with the following proposed penalties under 6721 and 6722 for not compliant with the ACA Reporting.
|Penalty type||Per return||Maximum penalty||Small business|
|Corrected within 30 days||$50||$545,500 per year||$191,000|
|Corrected after 30 days, but before Aug. 1||$100||$1,637,500 per year||$545,500|
|Corrected after Aug. 1||$270||$3,275,500 per year||$1,091,500|
In such a case, the ALEs must act quickly upon the Letter 5699 issued by the IRS to avoid the large penalties.
ACAwise helps you to respond to the Letter 5699 on time. If you have any queries in the Letter 5699, contact ACAwise at (704)-954-8420 or email your concern with the Letter you received to firstname.lastname@example.org. Don't delay further, because you have to respond to the IRS within 30 days from the date you receive this letter.
We have a team of experts who are ready to save you from paying millions of unnecessary penalties.