Q: IRS says I owe excess advance premium tax credit - No fault of my own - I had an overlap of two months (job health plan)
I was out of work for years until August 2016. My new job had benefits of health ins.- they said it would start Sept 1st. I never got insurance cards until Oct 12. I contacted Covered CA Oct 13th to cancel through the exchange and it got cancelled Oct 31st. (monthly APTC $959) (From what I understand it would have been illegal for me to not have health insurance... I feel like I did the right thing by making sure to not have any lapse in coverage - I could have had a penalty if I did. I wrote the IRS a letter explaining everything, but they still say I owe them the full amount plus penalties. I know it's not a $10k tax bill, but I don't feel like I should have to pay this. My AGI is only 55k (family of 3), and I already paid the IRS $770 when I filed my taxes in April. I'm at my wits end. What can I do?
A: The IRS may be correct. Run it by your tax preparer and ask her/him to create the required form within your tax return and ascertain the IRS’s accuracy. The information presented herein is for general purposes only. It is not intended for, and may not be construed as legal, tax, or accounting advice, or business solicitation. For specific advice, please consult a tax attorney in person. Good luck. Zaher Fallahi, Tax Attorney, CPA (California).
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