U.S. Rep. Peter Roskam (R-IL) sent a letter to the Department of Health and Human Services (HHS) on Friday demanding an explanation for why more than 800,000 people received incorrect data regarding their 2014 Obamacare subsidies.
“I am deeply concerned that nearly 1 million Americans reportedly received error-filled tax forms from health insurance marketplaces set up by the president’s health care law and run by your agency,” Roskam, the chairman of the House Ways and Means Subcommittee on Oversight, wrote in his letter to HHS Administrator Marilyn Tavenner. “These errors will almost certainly result in taxpayers receiving too much or too little in premium tax credits, which could significantly impact the size or timeliness of any tax refund they are owed.”
The errors have occurred on the new Form 1095-A, which is the form tied specifically to the federal insurance marketplace. The forms were reportedly populated with faulty benchmark premium data, resulting in a taxpayer’s entire tax return being incorrect.
Roskam’s letter also lays out several specific questions, for which he demands answers by no later than March 6. The questions include:
Who was responsible for reviewing and testing the forms to ensure their accuracy? What review or testing process is in place to ensure the forms’ accuracy? How can taxpayers determine whether a Form 1095-A they received from the federal marketplace contains errors?
What recourse is available for individuals who have already filed a tax return based on faulty information provided by the government? Will they be required to file again or take some other action? If yes, what is the estimated extra time burden imposed on taxpayers to remedy this mistake?
The letter also asks if it’s true that taxpayers who have yet to file their returns have been asked to wait until corrected forms are mailed to them and if taxpayers’ refunds will be delayed because of the incorrect data.