IRS May Need More Information Because of Affordable Care Act

irs-logoThe IRS may need more information from some income tax filers this year due to provisions of the Affordable Care Act. Taxpayers who signed up for coverage through the Health Insurance Marketplace chose to either have advance payments of the premium tax credit paid directly to their insurance provider in order to reduce their premiums throughout the year or to get their assistance at tax time as a premium tax credit.

Taxpayers who had advance payments made throughout the year need to file a return to either claim premium tax credit or reconcile the advance payment with the actual amount of premium tax credit to which they were allowed based on their 2014 income.

Taxpayers who have not yet filed their taxes or filed an extension request risk losing the advance payment of premium tax next year. The IRS urges them to file their taxes electronically within the next 30 days.

The agency also estimates some 760,000 taxpayers nationwide filed a tax return but did not attach the required Form 8962 to reconcile the payments. Those taxpayers will receive letters asking that they submit the form. Officials say it is not unusual for the IRS to follow up with taxpayers for more information about their returns after April 15th.