This page provides a clear, factual overview of what a IRS Letter 5005-A Substitute Assessment involves, why organizations receive it, how risk is evaluated, and the typical steps required to resolve it. These insights are based on patterns seen across Large employers in retail, hospitality, healthcare, staffing, and logistics with variable-hour workforces. and common issues identified in audits.
IRS Letter 5005-A Substitute Assessment relates to an audit, examination, or enforcement action focused on how the business classifies, pays, and reports its workers. It is typically issued when Full-time workers were not treated as employees for ACA purposes or Forms 1094/1095-C were not filed or were filed incorrectly.
Letters like the IRS Letter 5005-A Substitute Assessment often occur when organizations experience gaps in documentation, worker classification, onboarding processes, or payroll reporting. These issues become more common as companies scale, work with more contractors, or manage projects across multiple states and agencies.
TCWGlobal helps by supporting compliant payrolling for workers you already sourced, centralizing documentation, maintaining accurate worker records, and ensuring onboarding and reporting remain consistent across all projects and departments.
For industries like Large employers in retail, hospitality, healthcare, staffing, and logistics with variable-hour workforces., where audits related to ACA employer mandate / full-time workforce reporting commonly appear, our team reduces risk by helping clients maintain clean worker files, correct classification, and auditable payroll data.
When issues arise, TCWGlobal supports you in preparing required documentation, correcting records, and implementing processes that help prevent future Internal Revenue Service assessments or penalties.
