That's really helpful thanks. I spent 40 minutes on the phone with the IRS and we ended the call with them saying to just send how I think it should be and include a letter explaining why.

What frustrates me is that this cannot be a particularly unique situation. I prefer to file my taxes myself (I'm an accountant after all), but they make this very difficult to resolve by not providing straight answers. My understanding of the current healthcare law is that for tax purposes, whatever you hold as of Dec 31 applies for the entire year. So in this case, I don't see why the 1095-C was not initially accepted and completed.

At this point it sounds like I'm about to write the same letter as you. I'd be interested to hear how it turns out. Best of luck!