CP12 on Premium Tax Credits that were Waived on Recovery Act 2021

[slp_921]

They reduced my taxes by the information that I placed on the 8962/1095A I sent prior to the recovery act passing on 3/11/21.  After waiting for my refund 4 months  they deducted the Premiums and sent me a CP12 letter stating that I had 60 days to dispute my return.

They should have adjusted this systematically. They have my funds and they say they can take another 6 to 8 weeks to fix.   This is ridiculous. They are violating the 2021 RECOVERY ACT law that suspended these for calendar year 2020.  

Anything you send to them never gets there. They don't answer their phones.  What recourse do I have the have a lot of my money held and I need it.

[Critter-3]

Sorry but this is SOP  and there is really nothing you can do but wait for the system to work...  https://www.taxpayeradvocate.irs.gov/notices/notice-cp12/

[slp_921]

They should refund the monies. Not have me write to them after 4 months and dispute the CP12.  My advocate told them about this and they still sent out the CP12. What the heck? Why are they not following the LAW.  I filed 1/31 sent 8962 on 3/6/21 did not get my refund (partial) until 6/16.   What I have to wait for them to fix it.. That is not the letter says they say I have to write to dispute. What is their problem.?    They should have fixed this they had 4 months to correctly process my return.  I have waited enough!!! How inept???

[slp_921]

My tax refund is incorrect. They should  not have deducted these monies!!! They took 4 months to process and could not correct it then???

[Critter-3]

What are you talking about ???    Did you file before the change ?   Did your return have a repayment of the PTC on the 8962 ?   If so they are automatically changing that on the return and that is why you got the CP12 notice.   If they are not correct then you have 60 days to respond ... that is the law. 

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[slp_921]

Filed before change 1/30. Sent 8962/1095 before change 3/6.

Processed 5/24 after almost 15 weeks.

Per recovery & TT should receive reimbursement  or refund for the PTC on ACA

[slp_921]

LAW and 8962 - They should not have issued a CP12 See BELOW:

The American Rescue Plan Act of 2021, enacted on March 11, 2021, suspended the requirement to repay excess advance payments of the premium tax credit (excess APTC)  for tax year 2020. 

If you already filed a 2020 return and reported excess APTC or made an excess APTC repayment, you don’t need to file an amended return or take any other action.

Again, IRS is taking steps to reimburse people who filed Form 8962, reported, and paid an excess advance Premium Tax Credit repayment amount with their 2020 tax return before the recent legislative changes were made. Taxpayers in this situation should not file an amended return solely to get a refund of this amount. The IRS will provide more details on IRS.gov. There is no need to file an amended tax return or contact the IRS.

[Critter-3]

Ok ... you do understand the IRS is a BIG machine and one part doesn't talk to the other in real time so it sounds like the 2020 return has not been processed yet AND  you did not pay the balance due on the return because you know the change means you do not owe it  which is OK.    However the automated department sent the CP12 notice incorrectly  and the department who is recalculating the return has not caught up to your return yet and until they do you can simply ignore the incorrect CP12 notice  OR   respond back stating they are premature in sending the notice.    Nothing else you really can do but wait for the IRS to process the corrected return and I know this is upsetting but the IRS is coping with the situation as best as they can under the circumstances.  

[fanfare]

Meanwhile people are getting NTFL letters  (Notice to file Lien) requiring that you appeal immediately.

[slp_921]

You cannot call the number on the CP12. It says busy and cannot respond. So basically one is messed up for who knows how long. I have been processing since February 11th 2021.  It has been over 16 weeks. They have not even done anything with my 2020 amended return correcting my filing status. That was received April 5th.   So, I am at 12 weeks with my 2020 amended return that nothing has been done. As far as my actual 2020 initial filing it was accepted on 2/11/21 and I did not receive partial refund until 6/16/21 - 16 weeks after filing electronically.  They deducted the  fees for ACA and sent me a CP12.  They should have set the PTC to 0 and given me my full refund.   Instead they send me a letter to dispute the deduction. RIDICULOUS. They are the ones that should be following their own policies not inconveniencing me.  Do it right the first time.  This  will free staff to go on to other returns.  Totally inefficient.