Unfortunately this objection to an offside call doesn’t apply when a would-be insured applies to one of the insurance exchanges established pursuant to the Affordable Care Act of 2010, is told they qualify for PTC, get APTC, and breach the 400% MAGI cutoff.

That statute has received so much criticism (not to say condemnation) from the entire political spectrum that I merely report Chalaundra Edjewel Sneed, T. C. Sum. Op. 11, filed 3/29/23, as another example of the failure of the exchanges scheme. A complicated system is inadequately explained, and operating personnel cannot always correctly advise applicants.

Chalaundra’s year-at-issue MAGI is over the 400% poverty level cutoff, so owes the $7K APTC she received. She didn’t attach her Form 8952 reconciliation to her 1040, but mailed it later.

Judge Elizabeth Crewson Paris: “Petitioner does not appear to dispute respondent’s determination on technical grounds but instead seeks a collection alternative because of financial hardship. In this proceeding to redetermine a deficiency under section 6213(a), the collectibility of the tax liability is not at issue before the Court. The Court notes, however, that the Oklahoma Marketplace informed petitioner that she was eligible for the APTC for 2018 because of an apparent misunderstanding of the application instructions on her part. The Court is not unsympathetic to petitioner’s plight. Nevertheless, the Court is bound by the statute as written and the accompanying regulations when consistent therewith. The simple facts are that petitioner’s MAGI exceeded eligibility levels and that she must repay the APTC payments made on her behalf. Accordingly, the Court sustains respondent’s determination.” T. C. Sum. Op. 11, at p. 5 (Citations omitted).

I must leave discussion of the other deficiencies in the present system to another place. This is, as always, a nonpolitical blog.