The IRS has almost no statutory power to collect ObamaCare “fines” from people who fail to purchase insurance.
About 10 days ago Rush Limbaugh summarized an excerpt from the Congressional “Joint Committee On Taxation” (page 33, paragraph 2)
Link: https://www.jct.gov/publications.html?func=startdown&id=3673
The IRS can “add” a fine to your tax bill, but its only coercive power to collect the fine is to subtract it from your tax refund, IF and only IF you have a tax refund.
Bad luck for those who get the Earned Income Tax Credit, obviously.
But, for the rest of us, the IRS cannot garnish wages, seize property, impose liens, or send us to jail.
The Congressional summary actually says the IRS cannot file a civil or criminal lawsuit over unpaid fines!
Two Questions:
(1) Does this destroy John Roberts’ ruling that the fine is a tax? (read footnote 68, page 33)
(2) Is there any reason people can't completely ignore the fine and just ask insurance companies to write policies that do not conform to ObamaCare standards, policies that they actually want to buy?
It is my understanding that there is no ruling that the fine is a tax. Roberts simply called it a tax as a means of justifying his ruling that Obamacare was Constitutuional. Since the four liberals joined him in this ruling, Obamacare was declared Constitutional. But nobody joined him by concurring in his "it's a tax" opinion -- which is simply considered advisory.
(2) Is there any reason people can't completely ignore the fine and just ask insurance companies to write policies that do not conform to ObamaCare standards, policies that they actually want to buy?
In all likelihood, the insurance company would be committing a felony if they were to accede to your request.
For confirmation, you could ask any insurance agent.