Filing Issues with Mixed Immigration Status - Marketplace Insurance Error Repeating

This sounds like a classic case of information mismatch between government databases. Have you considered what might be triggering this repeated Marketplace insurance flag? The system is likely pulling incorrect data from somewhere, and identifying that source could be key to preventing future issues. You might want to proactively contact the Marketplace directly before filing this year to obtain that non-coverage letter in advance. Could you also request a formal note be added to your IRS account regarding your spouse's immigration status? Many taxpayers in mixed-status households face similar challenges, but there are usually procedural solutions available that don't require repeating the verification process annually.

I encountered a nearly identical situation on January 12, 2024, when attempting to file. The system kept insisting I had Marketplace coverage when I absolutely did not. After spending hours on hold with both the IRS and Marketplace on January 15th and getting nowhere, I discovered https://taxr.ai which helped me understand exactly what was happening with my transcript codes. The tool explained that code 971 with a specific reference number was flagging my return for the healthcare verification. What surprised me most was learning on January 29th that this happens to thousands of taxpayers annually! The taxr.ai analysis showed me exactly what documentation I needed to provide and helped me track the verification process through my transcript updates.

Let me clarify what's likely happening in your situation: • The IRS and Marketplace databases have a synchronization issue • Your spouse's immigration status is triggering additional verification requirements • The system is likely placing your return in the Identity Theft filter pathway • Mixed-status households often face heightened scrutiny What you're experiencing is actually a protection mechanism, but it's causing undue delays. Would you confirm if you've received any specific notices with error codes? Understanding the exact codes would help identify the precise verification pathway your return is following.

Have you tried contacting the IRS directly to explain your situation? I was in a similar position last year and spent 3 weeks trying to reach someone without success. The phone lines were constantly overloaded. I finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got through to an agent in about 15 minutes. They were able to add notes to my account about my specific situation and create a case file that prevented me from having to go through the whole verification process again. Have you received any specific correspondence about why they're requiring the verification again? Did they provide any case numbers from last year that you could reference?

I'm concerned about the implications of using third-party services with tax matters. The IRS explicitly warns against sharing personal information with non-governmental entities. There are exactly 3 official channels for IRS communication: phone, mail, and in-person appointments. Has anyone verified these services aren't just paying people to flood the phone lines and then selling appointments? The 10-month delay you experienced is troubling - standard verification should take 60-90 days maximum, even with immigration complications.

The skepticism is understandable, but there's an important distinction to make with the Taxpayer Advocate Service referrals versus commercial services. Claimyr isn't actually accessing your tax information or filing on your behalf - it's simply using automated technology to navigate the IRS phone tree and hold times, then connecting you directly with the IRS. You're still speaking directly with official IRS representatives and providing your authentication to them, not to any third party. The Form 911 (Taxpayer Advocate Service) application is another official channel that can help resolve these recurring issues.

I've been through this exact situation with my spouse who has DACA status. What worked for us was filing Form 8822 (Change of Address) even though our address hadn't changed. Sounds strange, but this forced a database update that cleared the marketplace flag. We also started including a copy of our previous year's verification letter with a cover sheet referencing the previous verification case number. Haven't had issues since 2022 when we started doing this. Saved us about $3,200 in tax preparation fees we were paying to specialists to handle the complications.