If you or a family member received an incorrect IRS Form 1095-A for the Health Insurance Marketplace, and you are still waiting for the corrected IRS Form 1095-A to file your taxes there is a new procedure from the IRS that you will need to do to avoid failure to file penalties and failure to pay penalties.
A number of taxpayers enrolled in Health Insurance Marketplace options received the incorrect IRS Form 1095-A and are still waiting for a correct version with the right information from the IRS. If you are still holding out hope for a correct Health Insurance Marketplace Statement for 2014 taxes you may need to file a 2015 tax extension to avoid penalties.
If you fall into the category above, you still need to file taxes by April 15th or you need to file a tax extension for you 2014 taxes using IRS Form 4868.
If you file the IRS Form 4868 you get an automatic six month extension on your taxes. This gives you until October 15th to complete your taxes. A Treasury Spokesperson issued the following statement,
Today, the Department of the Treasury and the IRS are announcing penalty relief for individuals enrolled in qualifying Marketplace coverage who are unable to file an accurate tax return by April 15 due to problems related to a Marketplace tax statement (Form 1095-A). Taxpayers in this situation should file Form 4868 (request for an automatic extension) with the IRS by April 15.
You can use our guide to file IRS Form 4868 from your iPhone, iPad, Android Mac or PC. The process is a one page form and you can complete it in about 5 minutes. It is possible to e-file the form, but most users will find it easier to complete IRS Form 4868 and mail it to the IRS with a post mark by April 15, 2014. This is an automatic extension and you can fill it out without the help of an accountant or tax preparation service.
In that guide you’ll also learn about the process and find answers to common Tax Extension questions that many filers want to know before asking for the automatic extension.
For users who already filed using the incorrect form, it is possible to file an amended return, but the IRS did announce that the agency will not go after these users. A Treasury Spokesperson states, “The IRS will not pursue the collection of any additional taxes from these individuals based on updated information in the corrected forms.”
The Journal of Accountancy shares more information on this process. The publication states, “For the 2014 tax year, the IRS will abate the Sec. 6651(a)(2) and Sec. 6651(a)(3) penalties and waive the Sec. 6654(a) penalty for taxpayers who received a delayed Form 1095-A or a Form 1095-A.” This is only valid if you file by April 15th or file a tax extension.
In the guide, the Journal of Accountancy warns that you will still get a letter form the IRS with penalty information, but that you should reply to that letter with the following statement,
“I am eligible for the relief granted under Notice 2015-30 because I received an incorrect or delayed Form 1095-A.”
Users who still have questions should contact the IRS or a tax preparation professional to make sure they take the correct steps, but filing IRS Form 4868 for an automatic tax extension is something that you can do on your own.