Taxpayer had subsidized health insurance last year based on low projected income (i.e. advance payment of the premium tax credit); however, the taxpayer's new business brought in income exceeding all expectations, and significantly above the income declared for the subsidy.
Obviously, the taxpayer will have to enter this credit on Form 8962 and it will flow through to the 1040 and be added to his tax. However, the taxpayer lost his Form 1095-A and does not expect to be able to replace it before April 18. The taxpayer declines to even guess at how much the credit was (after all it went straight to the insurance company instead of into the taxpayer's pocket).
The instructions on Form 4868 say "If we later find that the estimate wasn't reasonable, the extension will be null and void." Would it be reasonable to put what the tax liability is without the repayment of the health insurance tax credit, or should I put in some huge number that's well over what the credit could possibly be? Is the test for "reasonabless" biased toward unreasonably low estimates over unreasonably high ones? Can anyone tell me the facts of any cases where the IRS nullified an extension on this basis?
Thanks, Ed