IRS Error Code 8960_hold can cause complications in your tax filing process, but it can be easily fixed by following a few simple steps.

Key Takeaways:

• IRS Error Code 8960_hold occurs when taxpayers fail to reconcile advance payments of the premium tax credit (APTC) on Form 8962.
• Starting in tax year 2021, electronically filed tax returns without Form 8962 are being rejected by the IRS.
• To resolve this error, individuals can refile their complete return by attaching Form 8962 or providing a written explanation for its absence.
• It is important to address this issue promptly to avoid processing delays.
• Taxpayers should review their health insurance records, including Form 1095-A, to ensure accurate reconciliation of APTC.

Understanding IRS Error Code 8960_hold

IRS Error Code 8960_hold is an indication that there has been an error in reconciling advance payments of the premium tax credit (APTC) on Form 8962. This error can delay the processing of your tax return and it’s important to address it promptly. Starting from tax year 2021, the IRS has implemented a new policy where electronically filed returns without Form 8962 will be rejected.

To resolve this error, you have two options. First, you can refile your complete tax return by attaching Form 8962. This form is used to reconcile any advance payments of the premium tax credit you received throughout the year. Including this form in your return will ensure accurate reporting and help prevent processing delays.

If you believe that you are not required to complete Form 8962, you can provide a written explanation along with any supporting documents. This will help justify your claim and prevent the error code from appearing on your return. Make sure to review your health insurance records, such as Form 1095-A, to ensure accurate reconciliation of APTC.

Resolving IRS Error Code 8960_hold

To resolve IRS Error Code 8960_hold, individuals can refile their complete tax return by attaching Form 8962 or providing a written explanation for its absence. This error occurs when taxpayers fail to reconcile advance payments of the premium tax credit (APTC) on Form 8962.

To fix this issue, follow these steps:

1. Review your tax return and ensure that Form 8962 is properly filled out and attached. This form is essential for reconciling APTC and avoiding Error Code 8960_hold.
2. If you realize that you forgot to include Form 8962, you can refile your complete return by attaching the form. Make sure to double-check all information and calculations to ensure accuracy.
3. If you believe that you are not required to complete Form 8962, you can provide a written explanation along with any supporting documents that justify your claim. This will help the IRS understand your situation and resolve the error.

It is crucial to address this issue promptly, as the IRS has implemented a new policy where electronically filed tax returns without Form 8962 will be rejected. By taking the necessary steps to resolve Error Code 8960_hold, you can avoid processing delays and ensure a smooth tax filing process.

Ensuring Accurate Reconciliation of APTC

Accurate reconciliation of APTC is crucial to avoid IRS Error Code 8960_hold, and taxpayers should review their health insurance records, including Form 1095-A, to ensure the correct information is provided. This process ensures that the premium tax credit is properly calculated and avoids any discrepancies that could trigger the error code.

When reviewing Form 1095-A, taxpayers should pay close attention to details such as the coverage start and end dates, the monthly premium amounts, and the applicable benchmark plan. Any discrepancies or inaccuracies in this information can lead to an incorrect calculation of the premium tax credit and, subsequently, trigger IRS Error Code 8960_hold.

In addition to reviewing Form 1095-A, taxpayers should also ensure that they report any changes in their household size, income, or coverage status accurately. Failing to update this information can lead to an overpayment or underpayment of the premium tax credit, resulting in the error code being generated by the IRS.

IRS Error Code 8960_hold Troubleshooting

If taxpayers encounter IRS Error Code 8960_hold despite their efforts to ensure accurate reconciliation of APTC, there are a few troubleshooting steps they can take:

• Double-check the information provided on Form 8962 to ensure accuracy.
• Verify that Form 1095-A is correct and contains no errors or omissions.
• Contact the healthcare marketplace or insurance provider to rectify any discrepancies in the information they provided.

If these troubleshooting steps do not resolve the issue, taxpayers should consider seeking professional assistance from a tax advisor or contacting the IRS directly for further guidance.

Providing a Written Explanation

If taxpayers believe they are not required to complete Form 8962, they can provide a written explanation and any supporting documents to justify their claim and resolve IRS Error Code 8960_hold quickly. This is an important step to take in order to prevent processing delays and ensure a smooth tax filing process.

When providing a written explanation, it is crucial to clearly state the reasons why the completion of Form 8962 is not necessary. Taxpayers should carefully review their tax records and supporting documents, such as Form 1095-A, to gather evidence to support their claim. The written explanation should be concise, well-organized, and include all relevant details to help the IRS understand the taxpayer’s position.

In addition to the written explanation, taxpayers should consider attaching any supporting documentation that can further substantiate their claim. This could include statements from insurance providers, proof of alternative coverage, or any other relevant records that support the taxpayer’s assertion that completing Form 8962 is not applicable in their particular circumstances.

By providing a clear and convincing written explanation, along with supporting documentation, taxpayers can effectively resolve IRS Error Code 8960_hold and ensure their tax return is processed accurately and without unnecessary delays.

Conclusion

In conclusion, addressing IRS Error Code 8960_hold is crucial for a smooth tax filing process, and by following the steps outlined in this article, taxpayers can quickly resolve this issue. This error code typically occurs when taxpayers fail to reconcile their advance payments of the premium tax credit (APTC) on Form 8962.

To fix this error, individuals can take immediate action by re-filing their complete tax return, ensuring that Form 8962 is properly attached. Alternatively, taxpayers can provide a written explanation if they believe they are not required to complete Form 8962, along with any supporting documents that justify their claim.

To avoid processing delays in the future, it is important for taxpayers to review their health insurance records, including Form 1095-A, and ensure accurate reconciliation of their APTC. This will help prevent the recurrence of IRS Error Code 8960_hold and any potential complications associated with it.

By promptly addressing this error code and taking the necessary steps to resolve it, taxpayers can ensure a seamless tax filing process and avoid any unnecessary complications or delays caused by IRS Error Code 8960_hold.