Mendel Quoted in Tax Notes Story Titled “IRS to Abate Penalties on Excessive Premium Tax Credit Payments”

Linda Mendel, of counsel in the Vorys Columbus office and a member of the labor and employment group, was quoted in a Tax Notes story titled “IRS to Abate Penalties on Excessive Premium Tax Credit Payments.” The story was about the steps the IRS has taken to alleviate the surprise that some taxpayers may face when filing their 2014 federal income tax returns regarding premium tax credit advance payments.

The story states:

“Notice 2015-9, 2015-6 IRB 1, released January 26, provides penalty relief to taxpayers who must repay excess payments under section 36B received during the 2014 tax year. The notice provides relief from the section 6651(a)(2) late payment penalty and the section 6654(a) underpayment of estimated tax penalty.

Linda R. Mendel of Vorys, Sater, Seymour and Pease LLP told Tax Analysts that Notice 2015-9 does not alleviate taxpayers' obligations to repay excessive section 36B premium tax credits, but it does waive penalties associated with the timing of repayment. ‘That seems like a reasonable measure for 2014, when taxpayers were first learning the mechanics of the exchanges and the tax credits and may not have understood the importance of promptly reporting midyear changes of household income or number of dependents,’ she said.”