The CP06 relates to the Premium Tax Credit under the Affordable Care Act. If you purchased health insurance through the marketplace and received advance premium tax credits to reduce your monthly premiums, you must reconcile those credits on your tax return using Form 8962. The CP06 means the IRS found a discrepancy in that reconciliation.
What Went Wrong
The most common issues are a mismatch between the advance credits you received (reported on Form 1095-A from the marketplace) and what you reported on your return, household income that differs from what you estimated when you enrolled, changes in family size that weren't reflected on your return, or failure to file Form 8962 at all.
If your actual income was higher than the estimate you gave the marketplace, you received too much in advance credits. The excess must be repaid, which reduces your refund or creates a balance due.
How to Respond
Get a copy of your Form 1095-A from your marketplace account. Compare it to what you reported on Form 8962. If there's a discrepancy, determine whether your Form 8962 was correct or whether the 1095-A contains errors.
If the 1095-A is wrong, contact your marketplace to request a corrected form. Then file an amended return with the corrected information. If your Form 8962 was wrong, file an amended return with the correct reconciliation.
If the IRS's adjustment is correct and you owe the excess premium tax credit back, pay the balance or set up a payment plan. The repayment amount may be capped depending on your income level.
Questions about a Premium Tax Credit adjustment? Call us at (813) 229-7100.