Challenge

A large school district received a letter from the IRS indicating that it owed more than $15 million in Affordable Care Act penalties for non-compliance with the employer mandate. The letter was demanding, confusing and concerning.

While the district's legal department wanted to engage an outside law firm to fight the IRS, the client showed the letter to the Hylant service team for advice.

Solution

Hylant shared a webinar with the client that specifically addressed the penalty notification process. It explained that we had anticipated the IRS would send out letters like the one the client had received. It also provided a step-by-step process detailing how to dispute the penalties.

The webinar relieved the client, who realized they were not alone and that Hylant was prepared to assist them in their plight.

Following the guidance provided by Hylant, the client proved that while the district did owe fines, the amount was $110,000, not $15 million. Further, the client updated the school district's reporting tool to reduce audit time and complexity and improve future audit outcomes.

Hylant employs experts who focus exclusively on helping clients understand, prepare for and address benefit plan compliance issues.