I have just prepared my client's 2015 tax return. She has a $750 Advanced Premium Tax Credit to repay. If she did not have this she would have a $600 refund. Is there a rule that repayment's of Advanced Premium Tax Credits are not subject to late filing penalties?
If not, do you think that filing the return without the Credit payback and letting the IRS send her a letter asking for Form 8962 will casue the IRS to miss the late filing penalty? Before you go "why are you making a big deal about a penalty on $150 of balance due". the reason is she owes $1400 for 2016 and if there is no penalty on 2015 I can get her a FTA for 2016. BTW, her 2016 balance due is from the repayment of the Advanced Premium Tax Credit ($1,000) and a penalty for not having health insurance for 6 months ($400).