(Bloomberg) — The U.S. Internal Revenue Service (IRS) will waive some penalties for taxpayers who owe taxes in connection with a Patient Protection and Affordable Care Act (PPACA) premium subsidy program.
The changes, announced Monday in IRS Notice 2015-09, apply only to people who received the PPACA advanced premium tax credit (APTC) subsidy on their insurance in 2014. On tax returns, they must reconcile eligibility for the credit with their actual income and pay back some of the subsidy if they received too much.
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That can happen if someone got a higher-paying job or a raise during 2014 and didn’t ask the government to alter the subsidy.
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The IRS will waive penalties for making that payment late or for failing to pay estimated taxes throughout 2014.