Nine Facts about IRS Letters

September 17, 2015 Robert Sheen IRS, Tax Filings

The IRS sent letters this summer to some taxpayers who were issued a Form 1095-A, Health Insurance Marketplace Statement, showing that advance payments of the premium tax credit were paid on the taxpayer’s behalf in 2014.

They IRS sent the letters because at the time they were mailed the agency had no record that the taxpayer had filed a 2014 tax return. The agency has just listed nine facts taxpayers should know about these letters and the actions they should take.

These include:

• IRS Letters 5591, 5591A, or 5596 remind taxpayers of the importance of filing their 2014 federal tax returns along with Form 8962, Premium Tax Credit
• They must file a tax return to reconcile any advance credit payments received in 2014 and to maintain eligibility for future premium assistance.
• If they do not file, they will not be eligible for advance payments of the premium tax credit in 2016.
• Even if taxpayers don’t usually file a return or if they requested an extension to Oct. 15, they should file their 2014 tax return as soon as possible.
• Until they file a 2014 tax return to resolve the issue with the Marketplace, they will not be eligible to get advance payments of the premium tax credit to help pay health coverage premiums in 2016 from the Marketplace.
• Taxpayers should have received a Form 1095-A, Health Insurance Marketplace Statement, earlier this year if they or a family member purchased health insurance coverage through the Marketplace in 2014. This form provides the information needed to complete Form 8962. Form 8962 must be attached to the individual’s income tax return.
• Consumers should contact their Marketplace if they have questions about the Form 1095-A they received.
• If consumers have recently filed their 2014 tax return with Form 8962, they do not need to file another tax return or call the IRS about these letters. In general, it takes about three weeks for a tax form filed electronically to be processed, and about six weeks for a paper return, although processing times can vary.
• Taxpayers should follow the instructions on any additional IRS correspondence they receive to help the IRS process the tax return.

In addition to these letters from the IRS, a consumer’s health insurance company may send a reminder to file the 2014 federal tax return along with Form 8962. In some cases, they may send reminders even if a consumer did not receive advance credit payments in 2014.

If a taxpayer is not otherwise required to file a tax return, there is no need to file a return if no member of the taxpayer’s family received advance credit payments in 2014.

More information is available on the Affordable Care Act Tax Provisions for Individuals and Families page of www.IRS.gov/aca.

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