Penalty relief, advance payments of premium tax credit for 2014

Penalty relief, advance payments of premium tax credit

The IRS today released an advance copy of Notice 2015-9 providing certain relief from penalties for taxpayers who have a balance due on their 2014 income tax return as a result of reconciling advance payments of the premium tax credit (as allowed for coverage under a qualified health plan) against the premium tax credit allowed on the tax return.

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Notice 2015-9 [PDF 127 KB] provides relief from the penalty under section 6651(a)(2) for late payment of a balance due and relief from the penalty under section 6654(a) for underpayment of estimated tax.

To qualify for the relief, taxpayers must meet certain requirements, and the relief applies only for the 2014 tax year.

The IRS stated that the relief provided by Notice 2015-9 does not apply to any underpayment of the individual shared responsibility payment resulting from the application of section 5000A because these underpayments are not subject to either penalty under sections 6651(a)(2) and 6654(a).

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