I received advance payments of the ACA Premium Tax Credit in 2023, but the amount advanced exceeds the amount I can actually take. Repayment of the excess credit is triggering an underpayment penalty (otherwise I would not have a penalty).
Can I request a waiver of this penalty? TurboTax indicates I can do so but provides little assistance doing so.
Is this old rule from 2014, https://www.irs.gov/pub/irs-drop/n-15-09.pdf , still in effect?
PENALTY RELIEF RELATED TO ADVANCE PAYMENTS OF THE PREMIUM TAX CREDIT FOR 2014 Notice 2015-9 Purpose This Notice provides limited relief for taxpayers who have a balance due on their 2014 income tax return as a result of reconciling advance payments of the premium tax credit against the premium tax credit allowed on the tax return. Specifically, this Notice provides relief from the penalty under § 6651(a)(2) of the Internal Revenue Code for late payment of a balance due and the penalty under § 6654(a) for underpayment of estimated tax. To qualify for the relief, taxpayers must meet certain requirements described below. This relief applies only for the 2014 taxable year.
That was only for tax year 2014. You can see if annualizing your income lowers or eliminates the penalty.
Waiver of underpayment penalties
If you have an underpayment, all or part of the penalty for that underpayment will be waived if the IRS determines that:
TurboTax thinks I *can* apply for a waiver. Is it mistaken?