IRS extends deadline for taxpayers who received wrong Obamacare form

First, they said all 800,000 taxpayers who received inaccurate information on their Obamacare taxes and had sent in their returns would have to file again.  Then they said, "Never mind."  Then it was discovered that 80,000 taxpayers still hadn't received the updated form in March.  The IRS promised they would.

Now it's revealed that the IRS still hasn't completed the process of sending out the updated forms.  The solution?  Any one of the 800,000 people who have not received accurate tax information can get an extension until October 15.

The Hill:

ObamaCare customers who received the wrong tax form from the federal government this spring will not face penalties if they miss the April 15 deadline, officials announced Friday.

Anyone who have not yet been sent corrected tax forms and are “unable to file an accurate tax return” now have until Oct. 15 to file — as long as they request an extension.

The government did not say how many people will be given extra time, though officials said in late March that 80,000 people were still waiting on their corrected tax forms. A total of 800,000 people had mailed the wrong forms.

“If a taxpayer receives their Form 1095-A before April 15 and is able to file using the form before the deadline, they should do so,” according to astatement from the Treasury Department released late Friday.

The Centers for Medicare and Medicare Services (CMS), which is overseeing the rollout of ObamaCare, has acknowledged that it has taken more time than expected to mail the proper forms.

Health officials, as well as White House spokesman Josh Earnest, had previously said everyone who received the wrong tax form would be able to file by April 15. The Department of Health and Human Services disclosed the error in mid-February after first discovering the issue in January.

The Treasury Department had previously announced that it would not require people to re-file their taxes if they had already submitted their forms based on the inaccurate information, though it encouraged customers to “consult with their tax preparers” to know if they should re-file.

The problem occurred when the Centers for Medicare and Medicaid sent out information on 2015 benchmark insurance policies instead of 2014.  The information is used to calculate subsidies.

How could that happen?  As we've seen since the rollout of Obamacare, the program is being managed by incompetents.  And you have to wonder what problems will crop up when the final 40% of Obamacare is implemented.  Lest we forget, next year begins the employer mandate for small businesses that will throw millions of insured employees onto the exchanges.  What kind of mass confusion that will cause is anyone's guess. 

The congratulatory editorials are vastly premature.  There is still plenty of opportunity for the Obama administration to screw up.

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