PPACA and the IRS:
 
FAQ for consumers about IRS relief related to incorrect forms 1095-A


Friends, 


 

Many of you are tearing your hair out trying to figure out what a 1095-A form is, should you be getting one, and where is it supposed to come from.  Acknowledging the issue, the IRS has issues some guidance/relief related to the incorrect information contained on some of the 1095-A forms that have been sent out.  Below are some valuable FAQ's for you to consider when finalizing your return for the 2014 tax year.


 

***Please Note:  the State of Michigan participates in a Federally Facilitated Marketplace (FFM)

 

 

What is a Form 1095-A?

 

The IRS Form 1095-A is a tax document provided to individual health insurance consumers who applied for coverage, and received an Advanced Premium Tax Credit (APTC) from the Health Insurance Marketplace.  The Form 1095-A provides you with information you need to complete Form 8962, Advanced Premium Tax Credit (APTC).  You must complete Form 8962 and file it with your tax return if you received assistance through advanced credit payments or if you want to claim the premium tax credit when you file your return.  If you and your family members have enrolled in multiple plans through the Health Insurance Marketplace you will receive a Form 1095-A for each health insurance plan.


 

  • To see what the Form 1095-A looks like - CLICK HERE for an example we have taken from the official IRS.gov website
  • To see what the Form 8962 looks like - CLICK HERE for an example we have taken from the official IRS.gov website

What relief was announced by the IRS?

 

In light of the 3/20/2015 announcement regarding additional incorrect information on certain Marketplace tax statements (1095-A), the Department of the Treasury is expanding the relief it previously announced on 02/24/2015 which will mitigate any harm to tax filers.  Any individual who enrolled in qualifying Marketplace coverage, received an incorrect form 1095-A, and filed his/her taxes based on that form does not need to file an amended tax return.  The IRS will not pursue the collection of any additional taxes from these individual based on updated information in the corrected forms.  Nonetheless, some individuals may choose to file amended returns.  This relief applies to tax filers who enrolled through the Federally-facilitated Marketplace or State-based marketplace.

 

 

Who is affected an how will I know if my form is wrong or delayed?


 

Some consumers with coverage through the Federally-facilitated Marketplace as well as some State-based Marketplaces may have received incorrect 1095-As, or their forms have been delayed.  CMS is notifying individuals who are affected by these additional errors with emails, phone calls and messages in consumers' Marketplace accounts.  If you have questions about your form, reach out to the Federally-facilitated Marketplace call center at 1-800-318-2596 or your State-based Marketplace.


 

What should I do if my form was wrong or if I haven't received it?

 

Individuals who have not yet filed their taxes should wait to file until they receive their corrected forms.  Individuals enrolled in qualifying Marketplace coverage - through the Federally-facilitated Marketplace or any State-based Marketplace - who received an incorrect Form 1095-A and filed his/her tax return based on that form, do not need to file amended returns.  The IRS will not pursue the collection of any additional taxes from these individuals based on updated information in the corrected forms.  Nonetheless, some individuals may choose to file amended return.


 

What if i can't file my taxes by April 15th because my 1095-A was incorrect or late?

 

We continue to urge individuals who have been notified of errors on their forms 1095-A and have not yet filed their tax returns to wait to file until they receive corrected forms.  Our colleagues at the Federally-facilitated and State-based Marketplaces are working hard to ensure that 1095-As are sent out as quickly as possible.  To the extent that cases arise in which individuals are unable to file their taxes by April 15th because they have not received a Form 1095-A, the IRS will consider options for possible relief and will provide additional information closer to the deadline.


 

Does this relief apply to everyone who received a late or incorrect 1095-A?

 

No.  This relief would not apply to an individual who did not enroll in Marketplace coverage, but nonetheless received a Form 1095-A and erroneously claimed a premium tax credit on his/her return.  It also would not apply to an individual who was enrolled in Marketplace coverage, did not receive a Form 1095-A, and filed a return without this information.  We do not expect either situation to be common - nonetheless, any such individuals should file amended returns.  If taxpayers in these situations choose not to amend, the IRS may contact them following its normal procedures in cases where additional taxes are due.  Treasury estimates that the impact on a consumer's tax liability, if any, will be small in the vast majority of cases.


 

What if I never received a 1095-A but i filed my taxes anyway without the information on the form?


 

Today's relief would not apply in thid situation and taxpayers should file amended tax returns.  Consumers should have now received a Form 1095-A, or should be receiving one soon.  If these tax payers choose not to amend, the IRS may contact them following its normal procedures in cases where additional tax is due.  We do not expect this situation to be common.


 

What if I got a 1095-A when I shouldn't have and used it to file my taxes?  Does this relief apply?

 

No.  This relief would not apply to an individual who did not enroll in Marketplace coverage, but nonetheless received a Form 1095-A and erroneously claimed a premium tax credit on his/her return.  We do not expect this situation to be common.  Nonetheless, any such individuals should file amended tax returns.  IF taxpayers in these situations choose not to amend, the IRA may contact them following its normal procedures in cases where additional taxes are due. 



 

We hope that you and your tax professionals find this information beneficial for this years tax season.  Altruis Benefit Consulting will continue to provide what we determine to be useful content to you, our valued clients and partners, to help clarify the tax complexities of the PPACA.  If you have any additional questions or concerns please feel free to contact us at any time.


 


 

www.altruisbenefit.com | 877.442.5878 | @altruishealth | info@altruisbenefit.com


 


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