WASHINGTON - Today, the Department of the Treasury and the IRS are announcing penalty relief for individuals enrolled in qualifying Marketplace coverage who are unable to file an accurate tax return by April 15 due to problems related to a Marketplace tax statement (Form 1095-A). Taxpayers in this situation should file Form 4868 (request for an automatic extension) with the IRS by April 15. When taxpayers receive their Form 1095-A, they should file their return using the information from the form. Treasury and IRS intend to release guidance shortly implementing penalty relief for individuals in this situation as long as they file a return by October 15. If a taxpayer receives their Form 1095-A before April 15 and is able to file using the form before the deadline, they should do so.
This builds on previously announced relief that any individual who enrolled in qualifying Marketplace coverage, received an incorrect Form 1095-A, and filed his or her tax return based on that form does not need to file an amended tax return. The IRS will not pursue the collection of any additional taxes from these individuals based on updated information in the corrected forms. Some individuals may choose to file amended returns. Individuals also may want to consult with their tax preparers to determine if they would benefit from amending.
Only a small fraction of tax filers received incorrect Forms 1095-A. Treasury estimates that in the vast majority of these cases, the impact on an individual’s tax liability will be very small.
For additional information, read the IRS’s FAQs here.