IRS Changes Position, Will Not Accept Tax Returns Which Are Silent On Healthcare Coverage

[Swordsmyth]

In a reversal, the Internal Revenue Service (IRS) has indicated (https://www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals) that it will not accept electronically filed tax returns where the taxpayer does not address the health coverage requirements of the Affordable Care Act (ACA). This is in contrast to the 2017 filing season when the IRS took the position (https://www.forbes.com/sites/kellyphillipserb/2017/02/16/irs-softens-on-obamacare-reporting-requirements-after-trump-executive-order/#7e8524e8a3cb) that it would accept and process tax returns where a taxpayer is silent on coverage. The tax agency said, at that time, that the treatment was consistent with their previous policy.
However, for the 2018 tax season, that will not be the case. According to the IRS (https://www.irs.gov/tax-professionals/aca-information-center-for-tax-professionals), electronically filed tax returns will not be accepted "until the taxpayer indicates whether they had coverage, had an exemption or will make a shared responsibility payment." Additionally, paper tax returns "may be suspended pending the receipt of additional information and any refunds may be delayed."

More at: https://www.forbes.com/sites/kellyphillipserb/2017/10/18/irs-changes-position-will-not-accept-tax-returns-which-are-silent-on-healthcare-coverage/#3f83076b7d7f

[Swordsmyth]

What if you don't pay? You might lose your refund. But otherwise? There's not a whole lot that could happen to you. As I've noted before, Congress didn't give IRS any real "teeth" for enforcement (https://www.forbes.com/sites/kellyphillipserb/2015/02/26/opting-out-of-the-obamacare-tax/#fcf144c40a03): no jail time, no liens, no levies. That doesn't mean they won't come after you with a big, threatening letter and a virtual shaking of the government's fist at you. And it doesn't mean they won't hold your refund.
So to recap, ACA is still law and the IRS says it plans to the enforce the law - as much as it can, anyhow. What comes next? We'll just have to wait and see.

[Weston White]

And what statute affords the IRS such privilege, pray tell?

[timosman]

..

[dude58677]

The deep state is at it again. This time defying Donald Trump's executive order. They should be fired.

[Sonny Tufts]

And what statute affords the IRS such privilege, pray tell?

IRC §6402(a):


In the case of any overpayment, the Secretary, within the applicable period of limitations, may credit the amount of such overpayment, including any interest allowed thereon, against any liability in respect of an internal revenue tax on the part of the person who made the overpayment and shall, subject to subsections (c), (d), (e), and (f) refund any balance to such person.

[phill4paul]

https://s3.amazonaws.com/lowres.cartoonstock.com/business-commerce-jumping_through_hoops-hoops-practise-practices-boss-rmon1768_low.jpg

[Weston White]

IRC §6402(a):

Ahum. Yea, that does not permit the IRS to refuse to process individual tax returns. In fact the IRS is legally obliged to process all such income tax returns, excluding only that that are incapable of being processed due to being grossly incomprehensible or nonsensical.

[angelatc]

What if you don't pay? You might lose your refund.

You lose future refunds as well. Best bet is to either claim an exemption or change your withholding so you owe them at the end of the year.

[timosman]

You lose future refunds as well. Best bet is to either claim an exemption or change your withholding so you owe them at the end of the year.

You will be fined for doing this. Do not ask me how I know.:cool:

[angelatc]

You will be fined for doing this. Do not ask me how I know.:cool:

I would assume your friend changed his/her withholding claiming 5 (or something) when in fact that person is an individual? Yes, you can get fined for that. But if you cut it close, so that you end up owing only a little bit, they generally won't mess with you.