APTC Excess

[LBR]

If a taxpayer understated his income for 2014 and the IRS wants that person to pay back the overpayment, is there a way to not have to payback the overpayment? The taxpayer is self-employed and was estimating his income for the 2014 tax year.
Thanks!

[kathyc2]

Other than possibly a cap on the payback depending on % of poverty line, it will need to be paid back.

If the TP did not pay in enough estimated payments based on estimating income of PY liability would you ask if they need to pay the balance? It's the same general concept. The PTC is based on an estimate and is trued up on return.

[Lion]

I've read about some penalty relief on that portion of the taxpayer's balance due because of the ACA reconciliation on the tax return. But, there is no "tax" relief on the return.