Penalty Relief Provided For Taxpayers Who Received Incorrect Or Delayed Forms 1095-A

In Notice 2015-30, the IRS has provided penalty relief for taxpayers who received a Form 1095-A, Health Insurance Marketplace Statement, that was delayed or that the taxpayer believes to be incorrect, and who timely filed their 2014 income tax returns, including extensions. The notice provides relief from Code Sec. 6651(a)(2) for late payment of a balance due, the penalty under Code Sec. 6651(a)(3) for failure to pay an amount due upon notice and demand, the penalty under Code Sec. 6654(a) for underpayment of estimated tax, and the accuracy-related penalty under Code Sec. 6662 The relief applies only for the 2014 taxable year.

The IRS will abate for taxable year 2014 the Code Sec. 6651(a)(2) and the Code Sec. 6651(a)(3) penalty, and waive the Code Sec. 6654(a) penalty for taxpayers who received delayed Form 1095-A or a Form 1095-A that the taxpayer believes to be incorrect if the taxpayer timely filed their 2014 federal income tax return, including extensions. The IRS will not impose the accuracy-related penalty under Code Sec. 6662 on any portion of an underpayment resulting from the receipt of an incorrect or delayed Form 1095-A. Taxpayers may still be liable for a penalty for an underpayment that is unrelated to the receipt of a delayed or incorrect Form 1095-A.

For more information, visit http://www.irs.gov/pub/irs-drop/n-15-30.pdf.

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