One of our clients was told by his insurance company that there is no penalty for not sending the (Obamacare) letters. He asked what my thoughts were on this.
Here is a copy of my response:
“Yes, that is what I have heard also. I mentioned in my email that I originally sent you that the SBA posted that there is no fine or penalty “under the law”.
But my concern is that that doesn’t necessarily mean that their can’t be a penalty. Administrative departments generally have the authority to levy penalties for non-compliance.
The safest position to take is that there probably will be a penalty. Without a monetary penalty, the other enforcement step might be to have businesses disclose with a check box on their tax return whether or not they complied with the Obamacare Letters. Then the question would be, if a business didn’t comply, are they more likely to be audited?
I don’t like any of this, but I’m thinking that finding the easiest way to comply may be the safest position to take (and maybe the least expensive position in the long run).
Thank you for your response. I hope this information helps.”
And I hope it helps the rest of you as well.