CP220J: an employer shared responsibility payment has been charged

What a CP220J means

A CP220J says the IRS has charged an employer shared responsibility payment (ESRP). This is the bill; the notice gives the due date, the amount and your payment options. [1]source 1

The payment applies to applicable large employers that didn't offer affordable, minimum-value coverage to full-time employees and their dependents, under the health care law's employer rules. [1]source 1

Unlike the individual payment, an assessed ESRP can be collected by lien and levy like any other tax, the IRS says, and interest runs until it's paid. [1]source 1

Why people get one

• The ESRP proposed earlier, usually in Letter 226-J, has now been charged. [1]source 1
• That can follow an employer's agreement with the proposal, a final determination after a response, or no response at all.

First steps

1. Read the notice for the amount, the year and the due date. [1]source 1
2. Compare it with the earlier Letter 226-J and any acknowledgement letter you received, so you know which figure was charged.
3. Pay by the due date, or look at payment arrangements if you can't pay it all. [1]source 1
4. For the rules behind the charge, the IRS points to its ESRP questions and answers and to the regulations at sections 54.4980H-4 and 54.4980H-5. [1]source 1

What not to do

• Don't set it aside. The IRS says an assessed ESRP can be collected by lien and levy. [1]source 1
• Don't overlook your reporting for the current year; the same Form 1095-C coding drives next year's figures.
• Don't pay through a link or phone number in an unexpected email or text. Use irs.gov, typed in yourself.

Related notices

• Comes before LTR 226-J The letter that first proposes the payment.

Keep reading

• Installment agreement

Questions