I work with ACA compliance and have never seen a form specifically numbered 4959. Back in 2022, I had a client receive what they thought was a Form 4959, but it turned out to be a CP 220J notice (Employer Shared Responsibility Payment). The actual form number was in tiny print at the bottom of the page. Double-check the actual form number - it's likely a CP-series notice related to ACA penalties. Even after years of dealing with these, I'm still surprised by how confusing the IRS makes their notice numbering!

I've been helping clients with ACA compliance issues for several years, and I agree with others here that Form 4959 isn't a standard IRS form number I recognize. Most likely scenarios: 1) It's actually a CP 220J notice for Employer Shared Responsibility Payment penalties, 2) It could be Letter 226J (the preliminary notice), or 3) It might be a CP 220A for information return penalties under IRC 6721/6722. The key is to look at the actual notice carefully - the real form designation is usually printed in small text at the top or bottom. Whatever the actual form, don't ignore it. These ACA-related penalties can be substantial ($3,240-$3,860 per employee for 2024), but there are often reasonable cause exceptions available if your client can demonstrate good faith compliance efforts or that they weren't actually subject to the mandate. I'd recommend having your client gather their employee count records and any health insurance documentation before responding.

lmaoo the irs playing games while the state already sending money 🏃‍♂️💨

Same here! Got my state DDD for this Tuesday but federal is still showing PATH hold. At least we know the state side is moving fast this year. Hoping federal starts releasing after the 15th like usual 🤞

Word of advice - never count on them coming together. IRS moves at snails pace these days smh

Dont worry bout it, perfectly normal. Each tax authority does their own thing on their own timeline. State systems usually process faster cuz they're dealing with way less returns than the IRS who's gotta handle ALL federal returns for the whole country.

Protip: check your tax transcript instead of WMR. WMR is useless af these days

Same situation here! Filed both state and federal on Feb 3rd, got my state refund last week but federal is still showing "processing" on WMR. From what I've read, they really are completely separate systems so timing can vary wildly. Some people get federal first, others get state first. I'm trying not to stress about it but the waiting is killing me! 😅

Has anyone ever received a notice from the IRS after stopping their 5500-SF filings once their balance went under $250k? I'm curious what actually happens in practice, not just what technically could happen.

This is really helpful information everyone! I'm in a similar boat - been paying a TPA for years for my Solo 401k when my balance has been under $200k the whole time. Based on what I'm reading here, it sounds like I have a few options: 1. File one final 5500-SF marking it as terminated/final to avoid any IRS questions later 2. Just stop filing and deal with any potential inquiry letter (which sounds pretty manageable based on Cameron's example) 3. Keep filing even though I'm not required to, just for peace of mind I'm leaning toward option 1 - filing a final form and then stopping. Has anyone actually done this termination approach? What exactly do you check on the form to indicate it's your final filing? Also, for those who've used the EFAST2 system - do you need any special software or can you do everything through their web portal?