WASHINGTON, D.C. — The Internal Revenue Service (IRS) has made significant updates to its frequently asked questions (FAQs) concerning the Premium Tax Credit. The revisions, which supersede earlier FAQs posted on February 24, 2022, are aimed at providing taxpayers with a clearer understanding of the credit and its implications.
The updates involve several key areas. Among them, the Eligibility FAQs have seen changes in questions 5, 7, 8, and 9. A new section has been added, titled “Affordability of Employer Coverage for Employees and for Family Members of Employees,” providing much-needed information on this topic. In this section, updates have been made to questions 11, 15, and 18, while new questions 12, 13, 14, and 22 have been added.
Other changes include updates to the Reporting, Claiming, and Reconciling FAQs, specifically question 30, and updates to the Unemployment Compensation 2020 and 2021 FAQs, particularly question 45.
The IRS states that these FAQs offer a valuable way to quickly communicate information to the public on topics of frequent inquiry and general applicability. However, they emphasize that FAQs typically provide responses to general inquiries rather than applying the law to taxpayer-specific facts, and may not reflect various special rules or exceptions that could apply in any particular case.
FAQs that have not been published in the Internal Revenue Bulletin will not be relied on, used, or cited as precedents by IRS personnel in the disposition of cases. If an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’s tax liability.
However, a taxpayer’s reasonable reliance on an FAQ is relevant and will be considered in determining whether certain penalties apply. Taxpayers who show that they relied in good faith on an FAQ and that their reliance was reasonable based on all the facts and circumstances will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty.
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