WASHINGTON — About 800,000 taxpayers who enrolled in insurance policies through HealthCare.gov received erroneous tax information from the government, and were urged on Friday to hold off on filing tax returns until the error could be corrected.
The Obama administration, under heavy pressure from congressional Democrats, also announced that it would give several million people more time to buy health insurance so they could comply with federal law and avoid tax penalties.
The incorrect insurance information is used in computing taxes. Consumers can expect to receive corrected data in the first week of March. With the new data, officials warned, some taxpayers will owe more and some will owe less.
Officials said they did not know why the error had occurred.
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If the court rules against the administration in that case, the White House says, it would cause hardship for many low-income people and chaos in insurance markets around the country. More than eight out of 10 people buying insurance through the public exchanges qualify for financial help.
Insurance companies are leery of extended enrollment deadlines, which scramble their timelines for setting policy rates. They also fear that consumers will disregard sign-up periods if they grow accustomed to fluid end dates.
“Given that this is a new process for consumers, this targeted special enrollment period is a sensible approach for those who qualify,” said Clare Krusing, a spokeswoman for America’s Health Insurance Plans, a trade group.
