IRS LTR 12C Requesting Completion of Form 8962 Part IV Lines 30-33

[aedwan]

Taxpayer received IRS LTR 12C requesting a completion of part 4 of Form 8962 Lines 30-33 to allocate amounts related to a shared policy. Information can only be entered at the bottom of Form 1095-A in the smart worksheet, which flows directly to Form 8962. If I enter the SSN of one of the other three persons sharing the policy and entering taxpayer's % in the worksheet, information flows to 8962 Line 30, listing the other person's social security number but with taxpayer's %, which doesn't make much sense. I think taxpayer's SSN and % should be entered at bottom of 1095-A.

In response to IRS LTR 12C, can I just complete Form 8962 manually for all shared allocations, listing taxpayer SSN on line 30 and the other three taxpayers SSNs on Lines 31 to 33, with 25% allocation each?

[George4Tacks]

WOW! Good old paper & pencil on the form, just like some of did in the olden days? Sure. Paper letter asking for a paper answer would surely allow this. Do not send the pencil copy, send the copy copy. 

[aedwan]

Thanks so much George4Tacks! Wondering why IRS wouldn’t just reconcile from 1095-A, listing all covered individuals, by totaling % of allocation reported on each individual tax return! 

[TaxGuyBill]

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@aedwan wrote:

If I enter the SSN of one of the other three persons sharing the policy and entering taxpayer's % in the worksheet, information flows to 8962 Line 30, listing the other person's social security number but with taxpayer's %, which doesn't make much sense. I think taxpayer's SSN and % should be entered at bottom of 1095-A.

listing taxpayer SSN on line 30 and the other three taxpayers SSNs on Lines 31 to 33, with 25% allocation each?

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You are intentionally wanting to fill it out the opposite way the program does it?  Have you read the Instructions for Form 8962 (and possibly Publication 974) for how it should be filled out?

[aedwan]

Thanks so much TaxGuyBill! I was looking forward to hearing from you because you’ve always been very helpful in all my previous posts!

If I let the program does it, whose SSN do I enter in the smart worksheet at bottom of 1095-A? I read in previous posts that the other person’s SSN should be entered and taxpayer’s %. However, I noticed information flows to 8961 Part 4 line 30 (Allocation 1) with the other person’s SSN but taxpayer’s %, which is kind of weird, especially if you’re going to complete other allocations on lines 31 to 33, listing each SSN and shared %.
iRS wants taxpayer to complete lines 30 to 33 (Allocations 2-4) for rest of persons sharing policy, which has to be completed manually as ProSeries doesn’t allow more than one allocation. 

[TaxGuyBill]

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@aedwan wrote:

whose SSN do I enter in the smart worksheet at bottom of 1095-A? I read in previous posts that the other person’s SSN should be entered and taxpayer’s %. However, I noticed information flows to 8961 Part 4 line 30 (Allocation 1) with the other person’s SSN but taxpayer’s %, which is kind of weird, especially if you’re going to complete other allocations on lines 31 to 33, listing each SSN and shared %.

iRS wants taxpayer to complete lines 30 to 33 (Allocations 2-4) for rest of persons sharing policy, which has to be completed manually as ProSeries doesn’t allow more than one allocation. 

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As I asked before, have you read the Instructions for Form 8962 and/or Publication 974?  I think you are mis-thinking things.  I don't know your client's situation, but I suspect the link below will help you realize the proper way to do things.

As for the other lines, as I said before, I think you are mis-thinking things and you should look at the link below (or related section in the Instructions for Form 8962 or Publication 974, if your situation is different from what I am suspecting).

https://www.irs.gov/publications/p974#en_US_2021_publink100023503

[aedwan]

Thanks for the link!