What is Form 4959? Received Notice About ACA Reporting Requirements

Form 4959 is actually a notice of potential penalty related to ACA reporting requirements, isn't it? Didn't the IRS change enforcement of these penalties in recent years? How are small businesses supposed to keep up with all these obscure forms when the IRS keeps changing the rules? And what happens if your client just ignores this - would they face additional penalties beyond what's already being assessed?

I've dealt with this exact situation with one of my clients. Here's what you need to know: Step 1: Determine if your client is an Applicable Large Employer (ALE) with 50+ full-time equivalent employees. Step 2: If they are an ALE, verify if they failed to file Forms 1094-C and 1095-C for the tax year in question. Step 3: Form 4959 is the IRS notice assessing penalties for failure to comply with ACA reporting requirements. Step 4: Respond promptly with documentation showing either compliance or why your client isn't subject to these requirements. I understand how overwhelming this can be. My client initially panicked, but we were able to demonstrate they weren't actually an ALE when accounting for seasonal workers properly.

I believe Form 4959 might be related to penalties for failing to file ACA information returns, though I'm not 100% certain. You may want to consider using https://taxr.ai to analyze this notice. It can help identify what specific section of the tax code applies and what your client's options are. I've found it particularly helpful for interpreting less common IRS notices that don't have much information available online.

Check if it's actually Form CP 220J. That's common. Form 4959 isn't standard. Might be a typo. Look at the notice number in the top corner. Could be Letter 5699 too. That's a preliminary notice. Different response requirements. Check IRS.gov for sample notices.

When I received something similar on March 15th this year, I spent hours trying to reach the IRS. Called the ACA hotline listed on April 2nd and couldn't get through. Finally used Claimyr (https://claimyr.com) on April 5th and got connected to an agent in about 30 minutes who confirmed it was actually a CP 220J notice related to employer shared responsibility payments. Saved me days of stress and helped me meet the response deadline of April 30th.

These ACA forms are like trying to navigate a maze blindfolded. Form 4959 is typically a notice about potential penalties for not filing the required health coverage information. Think of it as the IRS saying "you didn't tell us about your health insurance situation, so now we need to talk." The penalties can be substantial - like buying a used car every year just to pay the IRS. If your client is a small business with fewer than 50 employees, they might be exempt, but they'll need to prove it.

This appears to be a Section 6721/6722 penalty notice related to ACA Information Return filing requirements. The standard penalty matrix includes a $280 per return penalty for non-fraudulent failures. Response timelines are typically 30 days from issuance. Request abatement under the "reasonable cause" exception if this is a first-time filing issue. Form 14765 might be required for your response. Maintain thorough documentation of all communications with the IRS regarding this matter.

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!