Market Place--Incorrect 1095 A

[Super Mom]

I have a long time client just call me and say that she got a 1095 A from the marketplace that is incorrect. The market place has told her repeatedly that they are sending a new one, never do, and when she calls back, they say whoever she talked to before didn't know what they were talking about!!!!! She went to an agent who went online for her and created an email. This was obviously a disreputable person, and she can't get into that email he created. She cannot access her online account because they send the password reset to that email (I guess much like the PTIN) if you don't have that email you are out of luck!

So, her question to me was, we want to file our taxes so that if we have to pay we have a little time. I recommended that I could figure her taxes without the 1095 A, NOT file it yet and give her the numbers and hold everything until she HOPEFULLY gets a new form. Second guessing myself, not prepared any taxes with a 1095A and don't know what difference that can be---I do know that disreputable person entered the income wrong. So wondering if I should prepare with the 1095 A she now has and give her the numbers but NOT file it until she HOPEFULLY gets the new form.

Since I have no experience with filing 1095A's yet, was wondering what your opinions might be on what I should do.

Thanks!!

[Lion]

Look back through the threads, because I'm working with a very sleep-deprived memory. I think the error on the 1095-As was something like the wrong SLCSP numbers, 2015 amounts instead of 2014. You could look up the 2014 amount and have a really good estimate of your client's tax liability while you wait for the final form. Also, I remember someone saying the corrected forms are starting to arrive via mail.

[Bees Knees]

The IRS has also announced that if the return was filed with the incorrect 1095-A, the taxpayer does not need to amend and IRS won't go after the taxpayer for additional taxes, even if the taxpayer would owe additional taxes with the corrected 1095-A.

So that could be an option rather waste tons of time trying to track down the corrected 1095-A.

[JudyL]

Have your client call the marketplace and explain what happened with that disreputable agent and ask the person to help her reset her password. She'll have to go through steps to verify her identity to the person at the marketplace, but they should be able to help her. She should get this straightened out right away so that only she has access and no one else. Also, once she has access again, the corrected form 1095-A should be available to her in the "messages" section of the marketplace. She'll still also receive one by U.S. mail.

Lion is correct when she said that the error on the 1095-A was in the SLCSP amounts. The incorrect 1095-A forms used the 2015 amounts instead of the 2014 amounts for those SLCSP premiums. You or the client can look up the correct amounts on the marketplace to confirm that the new 1095-A has the proper amounts.

[RitaB]

Absolutely

The IRS has also announced that if the return was filed with the incorrect 1095-A, the taxpayer does not need to amend and IRS won't go after the taxpayer for additional taxes, even if the taxpayer would owe additional taxes with the corrected 1095-A.

So that could be an option rather waste tons of time trying to track down the corrected 1095-A.

Agree, don't waste time on the hunt. And these clients are probably overwhelmingly getting refunds (well, refundable credits), and they will aggravate the daylights out of us till they get that $.

My client who knew his 1095-A was incorrect called and waited and called and waited, and he finally said last week, "Let's go with the wrong form." I said, "If I am signing the return, we go with what you know is correct." He agreed with me. I am guessing that IRS will spend exactly zero time checking anything ACA related on 2014 returns, but I also think my obligation is to prepare a correct return.

The error on his form was that he became covered thru work and never paid November and December premiums. The form indicated that he did.

[Super Mom]

The errors on my clients form is that it says her son was covered for 3 months that he was not. They are having to repay a good bit of premium credit due to income being entered wrong by the agent that signed them up. I prepared with the form she has so that she could get the numbers (she was very concerned about having to pay) BUT I am not filing the return yet until she gets that corrected form. I am thinking that their repayment will be quite a bit less with that corrected form. Thanks for all your help!!!

[kathyc2]

I am thinking that their repayment will be quite a bit less with that corrected form.

In most cases the credit will be reduced/ payback increased with the corrected form because the benchmark plan will be lower. Exception to that would be a rare instance of where 2015 SLCSP being lower than 2014 plan.

You can get a pretty good idea what the corrected numbers will be using this: https://www.healthcare.gov/taxes/tools/silver/

[kathyc2]

The errors on my clients form is that it says her son was covered for 3 months that he was not.

I know it sound totally counter-intuitive, but removing her son for the 3 months is just as likely to increase the payback as decrease it.

[Super Mom]

Oh ok, thanks!