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IRS tantalizes 8965 PPACA form watchers

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The Internal Revenue Service (IRS) is leaving the many fans of the tax forms related to the Patient Protection and Affordable Care Act (PPACA) in suspense.

The IRS posted a revision of the instructions for Form 8965, the form for taxpayers who want to get an exemption from the PPACA individual coverage mandate for the 2015 plan year, on its Draft Tax Forms site Wednesday.

The IRS then pulled the draft off the site Thursday morning.

“This product will be posted on IRS.gov soon,” officials promise.

For the 2014 coverage year, taxpayers had to go through a multi-step process to decide how to ask for exemptions, where to send requests for exemptions, and how to document successful receipt of exemptions when filing tax returns for 2014.

Most consumers who did not receive exemptions, had income over a minimum level, and failed to have what federal agencies classify as minimum essential coverage had to pay a tax equal to 1 percent of income over a designated threshold.

IRS Commissioner John Koskinen estimated that the IRS received a total of about $1.5 billion in individual mandate penalty payments for 2014 from 7.5 million taxpayers, or about $200 per affected taxpayer who complied with the mandate penalty payment requirement.

Some tax preparers said Form 8965 business volume for the 2014 tax year seemed weak, possibly because many consumers were unaware of the PPACA individual mandate penalty system.

Tax preparers are hoping filing activity will increase next year, as awareness of the penalty, and the exemption application process, grows.

See also: PPACA tax penalty drove more spring health sales in South