IS A 1095 A MUST HAVE

[Lee B]

There is an ongoing discussion on the ATX Board about whether a client must show you a 1095 or can a preparer take the client's

verbal assertation that the client has qualifying coverage ? I thought that due diligence required us to see the 1095 ???

[Lee B]

The IRS is informing individual taxpayers that due to these extensions, they may not receive a Form 1095-B or Form 1095-C by the time they are ready to file their 2015 individual income tax return. While the information on these forms may assist in preparing a return, they are not required to file. Like last year, taxpayers can prepare and file their returns using other information about their health insurance. Individuals do not have to wait for their Form 1095-B or 1095-C in order to file.

Now that the IRS has extended the date that providers and employers have to to give 1095s to their employees until March 31st, we will have to decide what "other information " satisfies due diligence .

[Jack from Ohio]

All clients, can provide an actual 1095-A from the marketplace.  In the past 3 months, at the firm, we have seen every excuse from clients that say "I can't get a copy."  After standing our ground and saying "No 1095-A, no return," miraculously, all (approx. 20) people were able to produce the "can't get one" form from the Marketplace.

Second, anyone receiving a1095-A cannot check the box proclaiming full year coverage on the back of the 1040.  Depending upon the situation, anyone receiving a 1095-A must include Form 8962 ore 8965.  No exceptions.

[sfsd315]

21 hours ago, Jack from Ohio said:

Second, anyone receiving a1095-A cannot check the box proclaiming full year coverage on the back of the 1040.  Depending upon the situation, anyone receiving a 1095-A must include Form 8962 ore 8965.  No exceptions.

My understanding of checking the box simply states that the taxpayer had minimum essential coverage for the full year and it's possible that the MEC  can be obtained through the marketplace.  It seems this would result in the taxpayer receiving a 1095-A, checking the box that they had MEC, and then filing a Form 8962 for reconciliation of the premium tax credit that was received.

[Jack from Ohio]

3 hours ago, sfsd315 said:

My understanding of checking the box simply states that the taxpayer had minimum essential coverage for the full year and it's possible that the MEC  can be obtained through the marketplace.  It seems this would result in the taxpayer receiving a 1095-A, checking the box that they had MEC, and then filing a Form 8962 for reconciliation of the premium tax credit that was received.

Read the regs again.

[Pacun]

I think these are the few questions that are key:

Did everybody on your return have health insurance all year in 2015? yes

Where did you get your insurance from? From my employer.

I would check the box and efile.

Did everybody on your return have health insurance all year in 2015? no.

Are you going to pay the fine? yes

fill out the penalty form and efile.

Did everybody on your return have health insurance all year in 2015? yes

Where did you get your insurance from? From the exchange.

I need the form the exchange will sent you. NEXT.