IRS Turning Screws On Silent Obamacare Tax Returns

Oct 20, 2017

Taxpayers who submit their 2017 tax returns without disclosing their health insurance coverage will have their electronic returns rejected and their paper returns suspended. Even though the Trump administration has sought to undercut the law, the IRS is taking it upon itself to force compliance with the unpopular law. “Taxpayers remain obligated to follow the law and pay what they may owe at the point of filing.” The law exacts a penalty of 2.5 percent of adjusted gross income. The minimum penalty for an adult is $695 and $347.50 per child. There are several exemptions from the law, “including lacking access to affordable health coverage, being homeless, getting evicted, experiencing domestic violence, experiencing the death of a family member and filing for bankruptcy.” At the beginning of the Trump administration, the head of the IRS announced that he would accept tax returns that were silent with respect to Obamacare compliance. The latest announcement from the IRS is a reversal of its earlier position.