We love what we do. Dr. Taffy has so much fun researching and getting the goods for our audience. Just when you think this whole picture with Obamacare couldn’t get even more obscure, she discovers this article that says the IRS will offer an Obamacare penalty BUT only if you ask for it.
Before you get too excited, everyone will not qualify for this relief. If you are the person who decided not to get health insurance, this doesn’t apply to you. You still are probably better off in our opinion.
This relief is for the people who got health insurance through the exchange, they got the advanced tax credit to help them get health insurance and find out that owe an unexpected tax bill. Let’s face it, there are some people who wouldn’t have gotten health insurance without that subsidy.
If you take into account the many people who didn’t even get it, that number could add up really quickly. Health insurance is not a one size fit all which the government seems to not be aware of this little tid bit of information. Everyone’s situation is different and so is everyone’s household budget.
The sad thing about this is that people who had a change in their income and didn’t know they could make an adjustment on the marketplace are in for a rude awakening.
Here’s what it boils down to:
(1) The IRS is waiving premium tax credit late payment and estimated tax payment penalties.
(2) To get the penalty relief, you must ask – When you get notice form the IRS regarding your late payment penalty, you need to submit a letter to the address listed in the notice and include this statement “I am eligible for the relief granted under Notice 2015-9 because I received excess advance payment of the premium tax credit”.
As long as you file your 2014 tax return by April 15, even if you can’t pay your full tax bill then, you will be granted the penalty relief. Interest, however will continue to accrue.
We recommend you read it all at the article below because it doesn’t stop there: