Letter 226-J – Employer Shared Responsibility Payment (ESRP)

Low: Initial Employer Shared Responsibility Payment Reminder

What It Means:

The IRS sends Letter 226-J to applicable employers to remind them that they may have an Employer Shared Responsibility Payment (ESRP) due. This was determined by information collected on Forms 1094-C and 1095-C filed by the business, as well as income tax returns filed by employees. Although the letter lists a proposed payment amount, this is not a bill.

Next Steps:

Review your IRS 226-J letter and all attachments carefully. The letter will explain the specific steps to take if you agree or disagree with the proposed ESRP amount.

If you agree:

Complete Form 14764. Return it to the address provided, along with the full payment requested.

If you disagree:

Complete Form 14765 and provide a full explanation as to why you disagree with the ESRP amount proposed.

Regardless of which response form you send, be sure to sign and return all requested documents by the deadline listed in your Letter 226-J. You should also keep a copy of everything for your records.

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