How to Report Company to IRS for Not Complying With ACA?
My son is employed in Louisville, Kentucky by an international company. The company continues to say that they are “taking care of the paperwork” or some other excuse which, by this time just sounds like… lies. He signed up for employer health insurance when he was hired in September or October of last year and became eligible for coverage in November of that same year. He has yet to get any documentation of coverage including an insurance card, but has gotten tons of excuses and stalling tactics – “We don’t show you signed up,” he was told. When he replied that he’s got copies of the paperwork to show that he signed up, they changed their song to, “You should get the papers by next week…”
We have since learned that the company has made a habit of this practice with other employees and I am seriously considering a class action lawsuit against them.
My son and I have contacted multiple agencies within the state and everyone either knows nothing or does not want to become involved as no one has been able to provide any solid suggestion as to how to proceed or what can be done to rectify this situation. At this point, the question remains. What can be done to enforce the company’s responsibility to provide employees’ health insurance?
Answer
Any company operating in the US has to follow ACA guidelines. The IRS requests payments for non-compliance. If you feel a company is not complying with the law you can contact the IRS and have them look into it.
Learn more about how to report companies to the IRS.
Learn more about IRS rewards for "whistleblowers".
The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.
The IRS may pay awards to people who provide specific and credible information to the IRS if the information results in the collection of taxes, penalties, interest or other amounts from the noncompliant taxpayer.
The IRS is looking for solid information, not an “educated guess” or unsupported speculation. We are also looking for a significant Federal tax issue - this is not a program for resolving personal problems or disputes about a business relationship.
Keep in mind this is for serious tax fraud issues, not for basic individual
Rate and Comment on the Answer
This site uses Akismet to reduce spam. Learn how your comment data is processed.
I work for an international NGO, which is based in the US with more than 50 employees in both the US and abroad. I am an employee from the US, but in my employment contract it states that I do not receive any benefits. So, my employer says that it does not need to follow the Affordable Health Care Act because I have given up my right to benefits as stated in my contract. I believe that this is not a correct interpretation, however, because I do not believe that any business can have employees give up their rights afforded by federal laws. Furthermore, I believe that my employer has now decided not to renew my contract because I have brought up this issue and they would prefer to avoid any legal issues with this in the future.
If your company has everyone opt out of the ACA then you can get tax credits and the IRS will peanlize them as per the law. It’s not really your problem. If I was the employer I would double-check my options, as there is ‘*’ in the IRS documentation that says, “the ACA doesn’t apply if you force your employees to opt-out”.
I just started working for a company and there are “part time” employees who have been working 30-60 hour weeks for months with no option for coverage. I asked HR and they said that the 30 hours per week has to be an average after one year with the company. Is that accurate? It seems really unfair.
Measurement periods are more complicated than that, that isn’t how it works for large firms. They should be considering an initial measurement period.
This page will give you a primer, its complex so feel free to research it more and open up a dialogue with your employer. There are all sorts of odd rules that augment this: https://obamacarefacts.com/questions/initial-measurement-period-start-date/