This IRS Notice provides information regarding limited penalty relief for taxpayers who received a Form 1095-A Health Insurance Marketplace Statement that was incorrect or delayed and who timely filed their 2014 income tax return, including extensions. This relief applies only for the 2014 taxable year.
On February 20, 2015, the Centers for Medicare and Medicaid Services announced that approximately 800,000 tax filers who purchased health insurance from the federally-facilitated marketplace during 2014 received a Form 1095-A that contained an error related to the premium for the second lowest Silver plan (also known as the benchmark plan). The IRS reported that it is also aware that some state-based marketplaces had issues with the generation of the Forms 1095-A.
In order to provide relief from penalties for taxpayers, Notice 2015-30 outlines the procedures and requirements that taxpayers must satisfy in order to seek the relief from the penalties under sections 6651(a)(2), 6651(a)(3), 6654(a) and 6662(a) of the Internal Revenue Code. A taxpayer must have either filed a return by April 15 or requested an extension by April 15 to file a return by October 15.
The IRS will abate for taxable year 2014 the section 6651(a)(2) penalty and the section 6651(a)(3) penalty, and waive the section 6654(a) penalty for taxpayers who received a delayed Form 1095-A that the taxpayer believes to be incorrect if the taxpayer timely filed their 2014 federal income tax return, including extensions. Additionally, the IRS will not impose the accuracy-related penalty under section 6662 on any portion of an underpayment resulting from the receipt of an incorrect or delayed Form 1095-A.