Last week, CMS announced that about 20 percent of the tax filers who purchased
health insurance from the federal Marketplace received statements (or form
1095As) that include an incorrect piece of information. CMS released
detailed information about the error, which is available here. Treasury estimates that
approximately 50,000 tax filers (or less than 0.05% of total tax filers)
already have filed their taxes using these incorrect form 1095As. We have
concluded that these individuals do not need to file amended returns. The
IRS will not pursue the collection of any additional taxes from these
individuals based on updated information in the corrected forms.
Nonetheless, some individuals may choose to file amended returns. A
tax filer is likely to benefit from amending if the 2015 monthly premium for
his or her second lowest cost Silver plan (or “benchmark” plan) is less than
the 2014 premium. For example, if a filer’s original form lists a
benchmark premium of $100 and her updated form lists a premium of $200, it may
be in her interest to refile. Individuals may want to consult with their
tax preparers to determine if they would benefit from filing amended returns.
As CMS announced last week, affected individuals who have not yet filed
their taxes should wait to file until they receive their corrected forms.