IRS requesting 1095 form but couldn't afford healthcare - what should I do now?

The IRS letter is likely just a verification request because you indicated you didn't have health insurance. The 1095 series of forms (1095-A, 1095-B, or 1095-C) are documents that prove health insurance coverage, but since you didn't have coverage, you wouldn't have these forms. What you need to do is respond to the IRS explaining that you didn't have health insurance coverage during the tax year, which is exactly what you indicated on your return. Include your income information showing you were exempt from the penalty due to affordability issues. The IRS has exemptions for people who couldn't afford coverage, and based on your income level of $19,000, you would likely qualify for this exemption. You can call the IRS directly to explain your situation or respond in writing to the letter using the contact information provided.

After dealing with a similar issue, I found a service called taxr.ai (https://taxr.ai) that helped analyze my IRS notice and explained exactly what I needed to do. I was also confused about healthcare documentation when I got an IRS letter, and the tool helped me understand that I actually qualified for an exemption due to my income level. The site analyzes your tax documents and notices, then gives you clear instructions on how to respond. It saved me so much confusion since I didn't have to try interpreting IRS language on my own.

Just wanted to update after trying taxr.ai that was mentioned earlier. I uploaded my IRS letter (similar to yours about missing 1095 forms) and it identified that I qualified for a hardship exemption based on my income. The analysis explained exactly what to write in my response letter and what sections of the tax code to reference. I sent my response two weeks ago and just got confirmation from the IRS that my case was resolved! Didn't have to pay any penalties and they closed the inquiry. Wish I'd known about this sooner instead of panicking for days.

If you're still having trouble getting this resolved, I recommend Claimyr (https://claimyr.com) to actually get through to an IRS agent on the phone. I spent WEEKS trying to call the IRS about a similar healthcare documentation issue, and they would disconnect me after being on hold for hours. Claimyr got me connected to an IRS agent in under 45 minutes who explained exactly what I needed to do about my missing 1095-A form. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree and wait on hold for you, then call you when an agent is ready.

I take back what I said about Claimyr. I tried it yesterday after getting frustrated with constant IRS disconnections, and I actually got through to an agent in about 30 minutes. The agent confirmed I didn't need to submit a 1095 form since I qualified for a hardship exemption due to my income level. They explained that sometimes these letters are automatically generated when you indicate no health coverage on your return, but once you explain your financial situation, they can note in your file that you had a valid exemption. The agent told me to write a brief letter explaining my income and inability to afford coverage, reference the letter number they sent, and mail it back. No penalty applied.

I went through this last year! You don't need to send a 1095 form if you didn't have insurance - that's the whole point. The IRS is just asking for verification because their system flagged your return when you indicated no coverage. Call them and explain your situation - that you couldn't afford coverage. For 2025 filing (2024 tax year), the individual mandate penalty isn't even enforced anymore at the federal level, though some states still have their own requirements.

Has anyone actually paid a penalty for no health insurance recently? I haven't had insurance for 3 years and never got any letters or penalties. I'm wondering if they're just randomly auditing some people?