Issue
A public school district faced considerable financial issues with the IRS. After inadvertently reporting errors on Forms 1094 and 1095, the school district received a letter from the IRS assessing two years of penalties totaling $19 million. Unsure how to respond, the district reached out to CBIZ for support.
Solution
Our Regulatory & Compliance team immediately got to work using the following strategies:
- Engaged CBIZ experts in Affordable Care Act (ACA) compliance
- Directed the district to the CBIZ ACA Checkpoint to identify where and how errors occurred
- Wrote and submitted a letter to the IRS on behalf of the district
Outcome
The ACA project leader’s personal involvement was key to achieving a favorable outcome. As a result of our efforts, the IRS waived 100% of the penalties, saving the district $19 million. Impressed by the results, the school district hired CBIZ to provide future ACA support, including an annual compliance checklist. The team’s approach established additional trust and a positive, longstanding relationship between the school district and CBIZ.
| Company Information | |
|---|---|
| Industry | Public School District |
| Geographic Footprint | Kansas City |
| Number of Employees | 1700 |
© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.
“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.
