Exemption Due to Marketplace 1095-A Error

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It has recently been discovered that there is a widespread number of taxpayers that are encountering errors with the Form 1095-A (Health Insurance Marketplace Statements). The types of errors that are occurring consist of incorrect information on the form or a delay in receiving the form. Another error is erroneously receiving the form when you have not enrolled in a qualifying plan during 2014. This could have caused someone to claim the premium tax credit when they were not eligible or may cause the return to be inaccurately filed and inadvertently, would have produced an incorrect tax liability. An extension also may have been filed that was inaccurate due to being unable to calculate the correct amount of payment to include with the filed extension.

If you have encountered any errors or delays with your marketplace statements, you may be eligible for a recently released exemption to avoid any late payment or underpayment penalties. To qualify, your tax return must have been timely filed, including extensions, and was affected by an error or delay of your Form 1095-A (Health Insurance Marketplace Statement). This includes any inaccuracies that may have occurred or incorrect calculations for payments. This exemption is applicable to the 2014 tax year.

To request this exemption for 2014 and relief from a failure to pay notice and penalties, you can simply respond to the notice by stating “I am eligible for the relief granted under Notice 2015-30 because I received an incorrect or delayed Form 1095-A”. You can do the same thing to claim relief from an accuracy-related penalty and can submit a response stating your eligibility. To request relief from an estimated tax penalty, you can check box A on Form 2210, Part II and include the form with your tax return. A statement should be included stating you “Received an incorrect or delayed Form 1095-A”.

By Kelsey Olsen