IRS Letter 226-J: what it is and what to do first.
Letter 226-J notifies an applicable large employer of potential liability for an employer shared responsibility payment. It is the start of an inquiry, not a final bill.
What the IRS sends.
Letter 226-J
The IRS notice that tells an applicable large employer it may owe an employer shared responsibility payment.
Letter 227
A series of letters that close the inquiry or outline next steps.
Do Not Pay First
The IRS says employers should not make a payment without first being contacted by the IRS.
Why the forms matter.
Employer Reports
Forms 1094-C and 1095-C show what the employer offered and what employees would have paid.
Employee Credits
Liability depends on whether at least one full-time employee receives the premium tax credit.
Accurate Records Win
The response is built from the offer record. Missing or wrong forms weaken it.
Respond by the Deadline
The letter sets a response date. Do not let it pass without a reply.
Quick answers.
Short answers. This is general information, not legal or tax advice.
Is Letter 226-J a Bill?
No. It states potential liability and invites a response. The IRS describes it as a notification of potential liability.
Who Should Answer It?
The person who keeps your offer and payroll records, with your tax or benefits adviser.
Can We Get Help?
Yes. We can help you with the filing and the records that support the response.
Where the rules and figures come from.
Each figure on this page comes from the source below. Amounts are indexed or updated over time, so confirm current figures before relying on them.
IRS Employer Shared Responsibility
Letter 226-J, Letter 227 and the employer mandate overview.
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