Taxpayers are advised to heed the warnings of the IRS if their 2014 taxes are overdue.
Those taxpayers who received an advanced payment of the premium tax credit for health insurance in 2014, may not be eligible for the 2016 advanced payment as a result of being late. The tax credit falls under the Affordable Care Act.
Depending on the individual’s particular situation, the IRS will issue Letter 5591, 5591A, or letter 5596 to those who received their 2014 advanced payments but did not pay their taxes for that same year.
The letter also reminds taxpayers of the importance of filing their 2014 return along with Form 8962. Even with an extension, the IRS advises that filing sooner is better than filing later.
The Affordable Care Act inserted health insurance into tax season. The law mandates that almost all U.S. citizens must be covered with health insurance or pay a penalty. While little has changed in health care coverage for many, there will be some who are affected by the mandates.
Citizens are urged to become familiar with the laws to avoid any penalties for not having health care coverage or for filing their taxes late. Seeking the advice of a qualified tax professional can also be helpful.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney