What to do if your received one of IRS erroneous penalty notices

The IRS sent out approximately 4,000 erroneous notices to plan sponsors informing them that they filed either a late or incomplete Form 8955-SSA. It appears that a programming error triggered the notices. An IRS representative stated that the IRS will send a letter in approximately two weeks to the affected plan sponsors, notifying them of the error and relaying that no additional action is required from the plan sponsor.

Plan sponsors may also contact the IRS helpline prior to receiving the letter at 877-829-5500. According to the IRS representative, the penalty will be abated during the phone call, and a confirmation letter will be sent in the mail.