What This Notice Means

The IRS changed your Employer Shared Responsibility Payment (ESRP). Your notice shows whether you now owe money, have a zero balance, or are due a refund.

Under the Affordable Care Act's employer shared responsibility provisions, certain employers, called applicable large employers (ALEs), must either offer their full-time employees and their dependents minimum essential coverage that is affordable and provides minimum value, or potentially make an employer shared responsibility payment to the IRS.

What to Do

  • Read the notice. If you owe, it explains the due date, amount due, and payment options.
  • If you can't pay in full, look at payment arrangements. You may be able to set up a payment plan through the online payment agreement application.
  • If you're owed a refund, expect it within 4 to 6 weeks, as long as you don't owe other tax or debts the IRS is required to collect.

If You Disagree

Pay the balance due first. Then file a claim for refund by mailing a completed Form 843, Claim for Refund and Request for Abatement, to the address in the form instructions.

Build the claim on your records: who was a full-time employee in each month, what coverage was offered, and what your Forms 1094-C and 1095-C reported. If you have questions, call the number on your notice.

This Balance Gets Collected Like Any Other

An assessed ESRP is subject to lien and levy. It's collected the same way as other tax assessments. Interest is charged on any unpaid balance until it's paid in full.

Don't treat it as a lower-priority bill.

Resources

The IRS ESRP questions and answers and the ESRP regulations explain how the payment is figured. The ACA information center for applicable large employers and the Instructions for Forms 1094-C and 1095-C cover the reporting rules.

If your company received a CP233J and the ESRP balance is significant, call us at (813) 229-7100.