Strategic Victory: The Wilson Firm's Expert Negotiation Reduces ESRP Penalty from $465,000 to $9,000

The Wilson Firm recently navigated a significant victory in Employer Shared Responsibility Payment (ESRP) penalty negotiation, dramatically reducing a client's ESRP penalty from $465,000 to just $9,000. In this case, The Wilson Firm adeptly demonstrated to the IRS that the company satisfied the "minimum essential coverage" and "minimum value" standards, thereby ensuring that Section 4980H(a) penalties were not applicable. Instead, only the stipulations of Section 4980H(b) were relevant to the client's situation.

This strategic approach allowed The Wilson Firm to bypass the more complex and potentially costly "affordability" defense, which could have led to higher expenses and prolonged resolution times without a guaranteed positive result. 

If your business is facing ESRP penalties, there's no need to feel overwhelmed. Reach out to the tax professionals at The Wilson Firm, and let us devise a tailored, cost-efficient strategy to address your specific case.