IRS says client owes 15k?

[insurance5511]

Got a call today from client who made over 30k extra than what we claimed and now owes IRS 15k...When we called marketplace, clients flipped on me and said no one ever told her she needed to update her income if it changes!!

Now they’ve sent it over for a fraud investigation, never had one before so have no idea what happens next. Any other agents have this happen to them?

 

[Yagents]

Got a call today from client who made over 30k extra than what we claimed and now owes IRS 15k...When we called marketplace, clients flipped on me and said no one ever told her she needed to update her income if it changes!!

Now they’ve sent it over for a fraud investigation, never had one before so have no idea what happens next. Any other agents have this happen to them?

I wouldn't be concerned about it. Marketplace reps dont know anything about income.

You could only commit fraud if client told you income was higher than 400% Federal poverty level, and u then put in income under 400% and gave her a fake subsidized price.

I am sure u explained that if income goes up, and up too much, above 400% fpl, then 100% of aptc would be clawed back.

If she did call u, and stated her income went up higher than projected, then she would have been paying the full premium of over $1200 a month and still have a partial clawback.

The client was going to pay $15k for insurance one way or another if above 400 fpl. Either monthly, or via a clawback come tax time.

Technically, they got a tax free, interest free loan.

Also, make sure their income is in fact above 400% fpl. So many accountants make huge mistakes. Look at doing an IRA or HSA contribution to lower income under 400%.

 

[Yagents]

And it was a mistake to call the marketplace.

 

[vic120]

Geez I get constant emails from the marketplace in regards to my ins many many times mentioned I need to update if income changes

I don't know how anyone could claim ignorance on that

 

[adjusterjack]

Now they’ve sent it over for a fraud investigation,

Who is "they"?

What is "it"?

Fraud investigation by whom?

If you are contacted by anybody that bears even the remotest appearance of law enforcement you say "I'll talk to my lawyer and get back to you."

 

[Yagents]

Geez I get constant emails from the marketplace in regards to my ins many many times mentioned I need to update if income changes

I don't know how anyone could claim ignorance on that

You mean like the one my client just received today from the MP:

If you have experienced a change in household income due to the COVID-19 pandemic, like if your hours have been reduced or you were furloughed, you should update your 2020 application as soon as possible. You may qualify for more savings than you’re getting now.

Any changes to your household income may affect savings you’re eligible for. To update your application, log into your HealthCare.gov account, select your 2020 application, and then click “Report a Life Change” to update your income.

 

[insurance5511]

You mean like the one my client just received today from the MP:

If you have experienced a change in household income due to the COVID-19 pandemic, like if your hours have been reduced or you were furloughed, you should update your 2020 application as soon as possible. You may qualify for more savings than you’re getting now.

Any changes to your household income may affect savings you’re eligible for. To update your application, log into your HealthCare.gov account, select your 2020 application, and then click “Report a Life Change” to update your income.

Do they also get a letter in the mail like this? Some clients dont have an email ty

 

[Yagents]

Probably. Dont know. Someone who makes above 400% and doesnt have email is hard to fathom.