NEWS from the IRS

Public Announcements

Marc J. Zine
Senior Stakehold Liaison - IRS
Tax Professional & Industry Organizations 
Phone 916-974-5281
Fax 877-477-8639
Marczine@irs.gov

 

Click here to download:
IRS Tax Forum Fact Sheet: Identify Theft Information for Tax Professionals

CSTC -- IRS Don't Take the Bait

IR-2017-127, Aug.8, 2017  

WASHINGTON – The Internal Revenue Service, state tax agencies and the tax industry today reminded tax professionals that their entire digital network could be at risk for remote takeover by . Such a takeover could lead to fraudulent tax filings and damage to their clients. 

Increasing awareness about remote takeovers are a part of the“Don’t Take the Bait” campaign, a 10-part series aimed at tax professionals. The IRS, state tax agencies and the tax industry, working together as the Security Summit, urge practitioners to learn to protect themselves from remote takeovers. This is part of the ongoing Protect Your Clients; Protect Yourself effort.   

“This is another emerging threat to tax professionals that the IRS has seen on the rise,” IRS Commissioner John Koskinen said. “A remote takeover can be devastating to practitioners’ business as well as to the taxpayers they serve. It’s critical for people to take steps to understand and prevent these security threats before it’s too late.”  

A remote attack targets an individual computer or network as the cyber criminal exploits weaknesses in security settings to access the devices. Another line of attack uses malware to download malicious code that gives the criminals access to the network. Especially vulnerable are wireless networks, including mobile phones, modems, and router devices, printers, fax machines and televisions that retain their factory-issued password settings. Sometimes, these devices have no protection at all.  

There are multiple ways that can gain control of computers and other devices. Phishing emails with attachments can easily download malware that, when opened, give the criminal remote control of a computer.  

also can deploy certain tools that allow them to identify the location of and get access to unprotected wireless devices. For example, a printer with a factory-issued password can easily be accessed, and the criminals can see tax return information stored in its memory.  

The IRS urges tax profession also take the following steps to help protect themselves from remote takeovers:  

  • Educate staff members about the dangers of phishing scams, which can be in the form of emails, texts and calls, as well as the threat posed by remote access attacks;
  • Use strong security software, set it to update automatically and run a periodic security “deep scan” to search for viruses and malware;
  • Identify and assess wireless devices connected to the network, including mobile phones, computers, printers, fax machines, routers, modems and televisions. Replace factory password settings with strong passwords.
  • Strengthen passwords for devices and for software access.Make sure passwords are a minimum of eight digits (more is better) with a mix of numbers, letters and special characters;
  • Be alert for phishing scams: do not click on links or open attachments from unknown, unsolicited or suspicious senders;
  • Review any software that employees use to remotely access the network as well as those used by IT support vendors to remotely troubleshoot technical problems. Remote access software is a potential target for bad actors to gain entry and take control of a machine. Disable remote access software until it is needed. 

Additional IRS Resources: 

Don’t Take the Bait, Step 6: Watch Out for the W-2 Email Scam

IR-2017-130, Aug.15, 2017

WASHINGTON – The IRS, state tax agencies and the tax industry today urged tax professionals and businesses to beware of a recent increase in email scams targeting employee Forms W-2.  

The W-2 scam – called a business email compromise or BEC – is one of the most dangerous phishing email schemes trending nationwide from a tax administration perspective. The IRS saw a sharp increase in the number of incidents and victims during the 2017 filing season.

 Increasing awareness about business email compromises is part of the“Don’t Take the Bait” campaign, a 10-part series aimed at tax professionals. The IRS, state tax agencies and the tax industry, working together as the Security Summit, urge practitioners to learn to protect themselves and their clients from BEC scams. This is part of the ongoing Protect Your Clients; Protect Yourself effort. 

A business email compromise occurs when a cyber criminal is able to “spoof” or impersonate a company or organization executive’s email address and target a payroll, financial or human resources employee with a request.For example, fraudsters will try to trick an employee to transfer funds into a specified account or request a list of all employees and their Forms W-2.

“These are incredibly tricky schemes that can be devastating to a tax professional or business,” said IRS Commissioner John Koskinen. “ target people with access to sensitive information, and they cleverly disguise their effort through an official-looking email request.”

The Federal Bureau of Investigation reported earlier this year that there has been a 1,300 percent increase in identified losses – with more than $3 billion in wire transfers – since January 2015. The FBI found that the culprits behind these scams are national and international organized crime groups who have targeted businesses and organizations in all 50 states and 100 countries worldwide.

During the 2016 filing season, the IRS first warned businesses that the scam had migrated to tax administration and scammers were using business email compromise tactics to obtain employees’ Forms W-2. The criminals were immediately filing fraudulent tax returns that could mirror the actual income received by employees – making the fraud more difficult to detect.

In 2017, the IRS saw the number of businesses, public schools, universities, tribal governments and nonprofits victimized by the W-2 scam increase to 200 from 50 in 2016. Those 200 victims translated into several hundred thousand employees whose sensitive data was stolen. In some cases, the criminals requested both the W-2 information and a wire transfer.

The Form W-2 contains the employee’s name, address, Social Security number, income and withholdings. That information was used to file fraudulent tax returns, and it can be posted for sale on the Dark Net, where criminals also seek to profit fromthese thefts.

If the business or organization victimized by these attacks notifies the IRS, the IRS can take steps to help prevent employees from being victims of tax-related identity theft. However, because of the nature of these scams, many businesses and organizations did not realize for days, weeks or months that they had been scammed.

The IRS established a special email notification address specifically for businesses and organizations to report W-2 thefts: dataloss@irs.gov. Be sure to include “W-2 scam” in the subject line and information about a point of contact in the body of the email. Businesses and organizations that receive a suspect email but do not fall victim to the scam can forward it to the BEC to phishing@irs.gov, again with “W-2 scam” in the subject line.

 Protecting Clients and Businesses from BECs

The IRS urges tax professionals to both beware of business email compromises as a threat to their own systems and to educate their clients about the existence of BEC scams.Employers, including tax practitioners, should review their policies for sending sensitive data such as W-2s or making wire transfers based solely on an email request.

Tax professionals should consider taking these steps:

  • Confirm requests for Forms W-2, wire transfers or any sensitive data exchanges verbally, using previously-known telephone numbers, not telephone numbers listed in the email.
  • Verify requests for location changes in vendor payments and require a secondary sign-off by company personnel.
  • Educate employees about this scam, particularly those with access to sensitive data such as W-2s or with authorization to make wire transfers.
  • Consult with an IT professional and follow these FBI recommended safeguards:

o   Create intrusion detection system rules that flag e-mails with extensions that are similar to company email. For example, legitimate e-mail of abc_company.com would flag fraudulent email of abc-company.com.

o   Create an email rule to flag email communications where the “reply” email address is different from the “from” email address shown.

o   Color code virtual correspondence so emails from employee/internal accounts are one color and emails from non-employee/external accounts are another.

Don’t Take the Bait, Step 7: Protect e-Services Accounts, EFINs 

IR-2017-132, August 22, 2017

WASHINGTON – The IRS, state tax agencies and the tax industry today reminded tax professionals that they are responsible for protecting access to their IRS e-Services account and safeguarding their Electronic Filing Identification Number(EFIN) from thieves.  

National and international criminal syndicates routinely attempt to steal tax professionals’ usernames and passwords so they may access IRS e-Services to obtain the EFIN, which allows a criminal to steal clients’ sensitive information.  

Increasing awareness about protecting e-Services and EFINs is part of a “Don’t Take the Bait” campaign, a 10-part series aimed at tax professionals. The IRS, state tax agencies and the tax industry, working together as the Security Summit, urge practitioners to learn to protect themselves from password thefts. This is part of the ongoingProtect Your Clients; Protect Yourself effort.  

“For tax professionals working with the IRS, protecting these account numbers is critical,” said IRS Commissioner John Koskinen. “Practitioners should maintain, monitor and protect their Electronic Filing Identification Number. Failing to do so can be disastrous for their business and their clients.”  

Protecting Clients and Their Businesses from e-Services/EFIN thieves   

routinely use spear phishing emails to target tax practitioners. The emails impersonate IRS e-Services, trying to trick practitioners into disclosing their username and password. Once the thieves have these credentials, they access e-Services accounts and steal EFINs to file fraudulent tax returns. also are savvy enough to know to steal Centralized Authorization File (CAF) numbers, which are unique, nine-digit ID numbers assigned to those who represent others before the IRS. The con artists also know how to file fraudulent powers of attorney documents to access clients’ accounts.   

Password thefts are one reason the IRS has moved to Secure Access, a two-factor authentication process, to offer more protection for online tools. Secure Access requires not only a username and password but also a security code that is sent to a mobile phone previously registered with the IRS. The IRS is moving toward multi-factor protections for e-Services as well, and hopes to have this system in the near future.   

In addition, the IRS is working with Security Summit partners in the states and the private-sector tax industry to help protect taxpayers and their tax filings against these threats. 

Maintain EFINs

Once the EFIN application process is complete and an EFIN has been issued, it is important to keep accounts up-to-date. This includes: 

  1. Review the e-file application periodically. The e-file application must be updated within 30days of any changes, such as individuals involved, addresses or telephone numbers. Failure to do so may result in the inactivation of the EFIN.
  2. Ensure proper individuals are identified on the application and update as necessary. The principal listed on the application is the individual authorized to act for the business in any legal or tax matter. Periodically access the account.
  3. Add any new principals or responsible officials.
  4. Update any business address changes, including adding new locations.
  5. An EFIN is not transferable; if selling a business, the new principals must obtain their own EFIN.
  6. There must be an EFIN application for each office location; if expanding a business, an application is required for each location where e-file transmissions will occur.  

Tax Professionals: Monitor EFINs 

Help safeguard the EFIN. During the filing season, check on the EFINs status to ensure that it is not being used by others. Thee-Services account will give practitioner’s the number of returns the IRS received, which can be matched to practitioner records. The statistics are updated weekly. Contact the IRS e-help Desk at 866-255-0654 if there’s a higher volume shown than the number transmitted by the practitioner. 

After logging into the e-Services account, follow these steps to verify the number of returns electronically filed with the IRS: 

  1. Select practitioner name,
  2. In the left banner, select ‘Application,’
  3. In the left banner, select ‘e-File Application,’
  4. Select name again,
  5. In the listing, select ‘EFIN Status,’ and on this screen the number of returns filed based on return type is displayed.  

Protect EFINs

Increasingly, identity thieves are targeting tax professionals to gain access to client data or other sensitive information. A common scam involves efforts by criminals to steal the tax professional’s e-Service account password and EFIN. Here are some steps to protect the EFIN:
 

  1. Learn to recognize and avoid phishing scams that claim to be from the IRS or e-Services.
  2. Do not open any link or attachment received in a suspicious email.
  3. Periodically change the e-Service password and use a strong password consisting of letters, numbers and special characters.
  4. Periodically change the password to the email address used to correspond with clients. 

Please note:  The IRS continuously reviews EFINs and takes the necessary actions to inactivate any EFINs that are found to be compromised by an unauthorized firm or individual. The firm using the invalid EFIN will encounter Business Rule 905 when it e-files returns. The firm must call the e-help Desk at 866-255-0654 to request a new one.   

Maintain Contact with the IRS 

Authorized IRS e-file providers should maintain contact with the IRS to learn of any e-file updates. E-Service users can subscribe to Quick Alerts. Tax practitioners also can sign up for e-News for Tax Professionals or e-News for Payroll Professionals 

NEW INFORMATION ON DIRECT PAY AND EFTPS


As you know, the IRS provides a number of electronic payment options to help taxpayers meet their tax obligations. A new enhancement allows taxpayers to sign up for email notifications when using IRS Direct Pay or EFTPS to pay their taxes. This new email feature allows taxpayers to receive notifications about their payments in their personal email accounts.

The IRS made this feature available in response to taxpayer survey feedback. Before adding this option, the only way taxpayers could keep a record of their confirmation was to write it down or print their screen.

Once taxpayers sign up, they'll receive notification messages that show:

·  payment scheduled,

·  payment cancellation,

·  return of a payment,

·  reminder for a scheduled payment,

·  payment modified and

·  address change confirmation.

EFTPS users can opt-in to receive email notifications when they enroll or update their enrollment. Direct Pay users can opt to receive email notifications each time they make a payment. To better protect taxpayers, there are no web links within the email notifications.

The IRS continues to remind taxpayers to watch out for email schemes. Taxpayers will only receive an email from IRS Direct Pay or EFTPS if they've requested the service. Taxpayers should report all unsolicited email claiming to be from the IRS or an IRS-related function to phishing@irs.gov.

For more information about tax payments visit IRS.gov/payments.


The IRS has issued final regulations which increase the IRS user fee to $81 for taking the Special Enrollment Examination to become an Enrolled Agent; copy attached. 

Here is a summary of the total fee amounts: 

· Current fee (effective for tests taken beginning 5/1/17) for taking each part of SEE is $111.94.

Comprised of $11 for IRS and $100.94 for vendor. 

·  Effective for tests taken beginning 5/1/18 the total fee will be$181.94.

Comprised of $81 for IRS and $100.94 for vendor. 

·  Effective for tests taken beginning 5/1/19 the total fee will be$184.97.

Comprised of $81 for IRS and $103.97 for vendor. 

Note: Encouraging non-credentialed tax return preparers to take the SEE and become Enrolled Agents is a key message for RPO. RPO recently created a new brochure for this promotion. Pub. 5279, Your Pathway to Becoming an Enrolled Agent Starts Here, is available on IRS.gov. 

Plus, we still have Pub. 4693-A, Guide to the Enrolled Agent Program. 

If anyone has questions, feel free to contact me. 

Thanks!

IRS Recaps

IRS Recaps “Dirty Dozen” List of Tax Scams for 2017

Each year, the Internal Revenue Service issues a list of the top 12 tax-related scams it sees throughout the year. The IRS “Dirty Dozen” highlights various schemes that taxpayers may encounter anytime, many of which peak during tax-filing season.

Taxpayers need to guard against ploys that steal their personal information, scam them out of money or talk them into engaging in questionable behavior with their taxes.

Here is a recap of this year's "Dirty Dozen" scams:

Phishing: Taxpayers need to be on guard against fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers via email about a tax bill or refund. Don’t click on emails or fake websites claiming to be from the IRS. They may be nothing more than scams to steal personal information. (IR-2017-15)

Phone Scams: Phone calls from criminals impersonating IRS agents remain an ongoing threat to taxpayers. The IRS has seen a surge of these phone scams in recent years as con artists threaten taxpayers with police arrest, deportation and license revocation, among other things. (IR-2017-19)

Identity Theft: Taxpayers need to watch out for identity theft, especially around tax time. The IRS aggressively pursues criminals that file fraudulent returns using someone else’s Social Security number Though the agency is making progress on this front, taxpayers still need to be extremely cautious and do everything they can to avoid becoming victimized. (IR-2017-22)

Return Preparer Fraud: Be on the lookout for unscrupulous return preparers. The vast majority of tax professionals provide honest high-quality service. There are some dishonest preparers who set up shop each filing season to perpetrate refund fraud, identity theft and other scams that hurt taxpayers. (IR-2017-23)

Fake Charities: Be on guard against groups masquerading as charitable organizations to attract donations from unsuspecting contributors. Look out for charities with names similar to familiar or nationally-known organizations. Contributors should take a few extra minutes to ensure their hard-earned money goes to legitimate and currently eligible charities. IRS.gov has the tools taxpayers need to check out the status of charitable organizations. (IR-2017-25)

Inflated Refund Claims: Taxpayers should be cautious of anyone promising inflated refunds. Avoid preparers who ask taxpayers to sign a blank return, promise a big refund before looking at any records or charge fees based on a percentage of the refund. Fraudsters use flyers, advertisements, phony storefronts and word of mouth via community groups where trust is high to find their victims. (IR-2017-26)

Excessive Claims for Business Credits: Avoid improperly claiming the fuel tax credit. This tax benefit is generally not available to most taxpayers. The credit is usually limited to off-highway business use, including use in farming. Taxpayers should also avoid misuse of the research credit. Improper claims often involve failures to participate in or substantiate qualified research activities and satisfy the requirements related to qualified research expenses. (IR-2017-27)

Falsely Padding Deductions on Returns: Taxpayers should avoid the temptation to falsify deductions or expenses on their tax returns in order to pay less than they owe or  receive larger refunds. Think twice before overstating deductions such as charitable contributions and business expenses or improperly claiming credits such as the Earned Income Tax Credit or Child Tax Credit. (IR-2017-28)

Falsifying Income to Claim Credits: Don’t invent income to erroneously qualify for tax credits, such as the Earned Income Tax Credit. Taxpayers should file the most accurate return possible because they are legally responsible for what is on their return. Claiming false income can lead to taxpayers facing large bills to pay back taxes, interest and penalties. In some cases, they may even face criminal prosecution. (IR-2017-29)

Abusive Tax Shelters: Don’t use abusive tax structures to avoid paying taxes. The IRS is committed to stopping complex tax avoidance schemes and the people who create and sell them. The vast majority of taxpayers pay their fair share, and everyone should be on the lookout for people peddling tax shelters that sound too good to be true. When in doubt, seek an independent opinion if offered complex products. (IR-2017-31)

Frivolous Tax Arguments: Don’t use frivolous tax arguments to avoid paying tax. Promoters of such schemes encourage taxpayers to make unreasonable and outlandish claims, even though they have been repeatedly thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law or disregard their responsibility to pay taxes. The penalty for filing a frivolous tax return is $5,000. (IR-2017-33)

Offshore Tax Avoidance: The recent string of successful enforcement actions against offshore tax cheats -- and the financial organizations that help them -- show that it’s a bad bet to hide money and income offshore. Taxpayers are best served by coming in voluntarily and taking care of their tax-filing responsibilities. The IRS offers the Offshore Voluntary Disclosure Program to enable people to catch up on their filing and tax obligations. (IR-2017-35)

IRS Protect Your Clients, Protect Yourself Tax Tip Number 2 Safeguarding Taxpayer Data

How serious is this threat? Here are a few examples of criminal scams and schemes intent on stealing your information from just the past few months:

  • In April and August of 2016, the IRS sent emergency alerts to tax professionals about criminals using remote access technology to gain control of preparers’ computers. The criminals used the preparers’ systems to complete client tax returns, file them with the IRS and then direct the refunds to their personal bank accounts. How the criminals gained control of preparers’ computers is under investigation. However, the incident shows the value of strong passwords, not only to access computers and each client file but also to password-protected wireless systems.

  • One successful scheme aimed at payroll professionals could easily have migrated to tax preparers. A criminal created a “spoofing” email to appear as though it came from a company executive. The email requested Form W-2 information for each employee. Because of this scam, tens of thousands of Forms W-2 were sent to identity thieves.

  • One ruse tries to make tax preparers think a client is emailing with follow-up information from a previous discussion. The included attachment doesn’t contain tax information; it contains malware designed to infect computers. The conversational tone of the phishing email tries to trick the preparer into thinking he had an earlier conversation with this client and now the ‘client’ is following up with requested tax information.

  • Cybercriminals often pose as the IRS and request information that the IRS would never ask for via email or text. One popular scam tries to trick preparers into providing their password information for IRS e-Services accounts. The email to tax preparers asks them to update their e-Services accounts. It either infects the preparers’ computers with malware that tracks keystrokes or it sends preparers to a fake e-Services page where they enter password information. If you are in doubt about an e-services or IRS Quick Alert communication, go directly to the application through IRS.gov. Do not click on any link or attachment from a suspicious email.

Scams aimed at tax preparers evolve each year. Tax professionals must be aware that any email can be a possible ploy from a clever criminal. This is just a sampling of scams. See Publication 4557, Safeguarding Taxpayer Data, for steps to protect your client and protect your business.

This is one in a series of special security awareness tax tips for tax professionals. The IRS and its Security Summit partners launched the “Protect Your Clients; Protect Yourself” campaign to raise awareness among tax professionals about the threats posed by cybercriminals.

The Security Summit is a joint project by the IRS, state tax agencies and the tax community to combat identity theft. Also see, “Taxes.Security.Together.” for information directed to taxpayers.

e-Services Users


Important Update for e-Services Users

The IRS is committed to protecting taxpayer and tax preparer information and maintaining the security of its systems.  As part of that effort, the IRS is strengthening the identity validating process used to access certain self-help tools on IRS.gov.

Starting late October – October 24 is the target date – e-services users will be required to re-register using the Secure Access authentication process. Users must validate their identities through this process before they can access their accounts.

All e-services users will be affected by this change. Those who use e-services for TIN Matching only also must re-register. However, because there is no exchange of sensitive data, TIN Matching will use a more streamlined process. 

For details, please see: Important Update for Your e-services Account.

Secure Access is a two-factor authentication process that meets government standards and adds greater protections against attacks by cybercriminals.  This is a more rigorous process, and part of a wider effort to protect taxpayers and the tax community. For first-time users, it requires identity proofing, financial verification and an activation code text.  Returning users must submit their username/password credentials AND a security code text.

Starting October 24, the IRS also will provide additional staff for the e-Help Desk and provide assistance to those users who are having difficulty passing Secure Access. This assistance may include identity authentication by phone and an activation code by mail which will take five to 10 calendar days for delivery.

The same Secure Access authentication process currently supports Get Transcript Online. E-services users who created a Get Transcript account after June 2016 will have their Secure Access registration automatically migrate to e-services, but they will need to change their passwords on October 24.

It helps to be prepared. Please review Secure Access: How to Register for Certain Online Self-Help Tools to learn what you need to register successfully.

Users should ensure all credentials and certificates are up-to-date prior to October 24. Those with upcoming filing requirements should consider filing early.

New IRS Revenue Procedure 2016-47

Here’s a link to the new Rev Proc:  https://www.irs.gov/pub/irs-drop/rp-16-47.pdf.

IRS TAX TIP - HERE'S WHAT YOU NEED TO DO WITH YOUR FORM 1095-A

This year, you may receive one or more forms that provide information about your 2015 health coverage.  These forms are 1095-A, 1095-B and 1095-C. This tip is part of a series that answers your questions about these forms.

Form 1095-A, Health Insurance Marketplace Statement, provides you with information about your health care coverage if you or someone in your family enrolled in coverage through the Health Insurance Marketplace.

Here are the answers to questions you’re asking about Form 1095-A:

Will I get a Form 1095-A?

  • The Marketplace will send you a Form 1095-A if you, your spouse or a dependent enrolled in coverage for 2015. Most individuals did not enroll in Marketplace coverage and will not receive this form.
  • The Marketplace may send you more than one Form 1095-A if any of these apply:
    • Members of your household were not all enrolled in the same health plan
    • You updated your family information during the year
    • You switched plans during the year
    • You had family members enrolled in different states
  • The Form 1095-A is not new, but some people may receive it for the first time this year.

How do I use the information on my Form 1095-A?

  • This form provides information about your Marketplace coverage, including the names of covered individuals and which months they were covered last year.  
  • Use the information from Form 1095-A to complete Form 8962, Premium Tax Credit, and reconcile advance payments of the premium tax credit or – if you are eligible – to claim the premium tax credit on your tax return.
  • If you received advance payments, which are shown on lines 21-33 of Form 1095-A, you must file a tax return, and include Form 8962, even if you are not otherwise required to file a return.  Filing your return without reconciling your advance payments will delay your refund and may affect future advance credit payments.
  • If Form 1095-A, Part II shows coverage for you and everyone in your family for the entire year, you can simply check the full-year coverage box on your tax return to satisfy the individual shared responsibility provision.
  • If there were months that you did not have coverage, you should determine if you qualify for an exemption from the requirement to have coverage. If not, you must make an individual shared responsibility payment.
  • Do not attach Form 1095-A to your tax return - keep it with your tax records.

What if I don’t get my Form 1095-A?

  • If you are expecting to receive a Form 1095-A, you should wait to file your 2015 income tax return until you receive this form.  Filing before you receive this form may delay your refund.
  • The IRS does not issue and cannot provide you with your Form 1095-A. If you are expecting a form and do not get one, you should contact your Marketplace. Visit your Marketplace’s website to find out the steps you need to follow to get a copy of your Form 1095-A online.
  • You can find more information about your Form 1095-A from the Health Insurance Marketplace.

Depending upon your circumstances, you might also receive Forms 1095-B and 1095-C. For information on these forms, see our Questions and Answers about Health Care Information Forms for Individuals.

REPORTING HEALTH COVERAGE ON IRS TAX FORMS

To help navigate health coverage reporting, you should consider filing your return electronically.Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides you through the process and does all the math. There are a variety of electronic filing options, including free volunteer assistanceIRS Free File for taxpayers who qualify, commercial software, and professional assistance.

Here is information about reporting health coverage:

Form 8965, Health Coverage Exemptions

  • Complete this form if you need to claim a coverage exemption on your return or report a Marketplace-granted coverage exemption.
  • Use the worksheet in the Form 8965 Instructions if you need to calculate the shared responsibility payment.

Form 8962, Premium Tax Credit

  • Complete this form to claim this credit on your tax return, and to reconcile advance payments of the premium tax credit.

Form 1095, Health Care information Forms

  • If you enrolled in coverage through the Health Insurance Marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962. Wait to file until you receive this form.
  • Your health coverage provider or your employer may furnish you with a Form 1095-BHealth Coverage, or Form 1095-CEmployer-Provided Health Insurance Offer and Coverage. You do not have to wait to receive these forms before your file your tax return.
  • See our questions and answers for more information about how these forms affect your tax return.

Form 1040

  • Line 46: Enter advance payments of the premium tax credit that must be repaid
  •  Line 61: Report health coverage or enter individual shared responsibility payment
  • Line 69: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf

Form 1040-A

  •  Line 29: Enter advance payments of the premium tax credit that must be repaid
  • Line 38: Report health coverage or enter individual shared responsibility payment
  • Line 45: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf

Form 1040-EZ

  • Line 11: Report health coverage or enter individual shared responsibility payment
  • Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit

For more information about the Affordable Care Act and filing your 2015 income tax return visit IRS.gov/aca. Visit IRS.gov for more information on this topic if you file Form 1040-NR or 1040-NR-EZ.

Subscribe to IRS Tax Tips to get easy-to-read tips via e-mail from the IRS