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Received Form CP11 due to error with 2021 Premium Tax Credits

I just got form CP11 which claims there is an error on the return and they corrected it and want to bill me for extra taxes.

 

I called the number shown on the notice and she was not able look at the return due to the backlog. She said to resubmit form 8962, my 1095-A and the relevant portions of the 1040 so they could later reference them if needed.

 

Literal insanity. The government is not accountable. I will now resubmit my return and relevant forms for their convenience.

 

The issue, as far as I can gather, is they removed all the credits for the Premium Tax credits based upon my income. I believe they were negligent and "forgot" that in 2021 everyone was presumed at the 133% poverty level if they had at least 1 week of unemployment during 2021. Which I did and they could easily see in other income and the 1099-G.

 

Mainly wanted to post this in case this is happening to anyone else. If you receive a CP11 form claiming you owe back your valid Premium Tax credits, do not just pay it. There could be significant, pervasive financial harm to taxpayers who mistakenly receive this notice and mistakenly pay it. Especially receiving it in January 2023, for 2021 taxes.

 

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