Posted on 01/31/2015 3:59:48 AM PST by Libloather
If You Received a Higher Obamacare Subsidy Than You Were Eligible For, You Dont Have to Pay It Back This Year
**SNIP**
However, the IRS will waive the 2014 late payment penalty for those who received an excessive premium tax credit. The IRS has now granted these recipients of excessive federal benefits a one-year holiday. Even though they clearly owe the overpayment for 2014, they will effectively not have to, and no doubt wont, pay the money back because they will not face any penalty if they do not pay it immediately. If the Obama administration delays the payment again, it will ensure that the collection of too-big subsidies will be left to the next president.
The IRS is purporting to do this pursuant to its waiver authority, 26 U.S.C. § 6654(e)(3)(A), to waive penalties for estimated tax underpayment in unusual circumstances the imposition of such addition to tax would be against equity and good conscience, and considers non-payment to be due to reasonable cause under 26 U.S.C. § 6651(a)(2).
This is the latest of a long string of signs that Obamacare is unworkable. The IRS should be able to recoup money from those who received too large a subsidy for their Obamacare insurance plans. After all, under the law, it was money they were not entitled to. It is not really a tax at all, but a repayment to the government that happens to run through the tax system.
(Excerpt) Read more at dailysignal.com ...
It will develop in coordination with the upcoming election schedule; Dems actually have a freer hand to deal with it now that so many ObamaCare supporters are out of office anyway and Obama isn’t running for re-election. New Dem candidates can safely distance themselves from our new “tax”...
The scheme is very atomizing, every man or woman for him/herself in what is a community foolishness.
It is also my understanding that if you don’t pay back the subsidies...they won’t do anything to you anyway.
They just wait until you die and comeback against the estate and the children to take restitution.
Sooo...lie to get a big subsidy and you will be rewarded.
Until this article I haven't heard of any total forgiveness on paying back excessive subsidies. There is some minor forgiveness built into law, but not what this article suggests. If you take subsidies and go over 400% FPL, you have to pay it all back. Let's say there 2 different couples aged 60 that buy insurance on the same exchange. One couple decides to take the advanced subsidy, while the other couple decided to wait. Both couples end up the year at 410% FPL. The couple that took the advanced subsidy will likely have to payback close to $8K+. I can't see the IRS giving $8K to one couple and denying $8K to people that have identical financial situations.
They FORCE people to take it, then they propose to FORCE people to give some of it back.
It all sounds like a set-up for government persecution (of some not others on whims).
No wonder they are backing down. The political backlash would be enormous at a time when they can’t afford it (2016 just around the corner).
What a huge FU.
They have shown a willingness to do that in the past. If the problem turns out to be big enough, I am sure they will make something up. By the time it is settled by courts, they will be long gone..
Follow your “ moral compass “ my lad ! I DO ! !!!
Snoot ;o)
>>How the hell am I supposed to know what laws I can and cant break?
Symptom of a dictatorship. If laws are only enforced against political enemies, then essentially there are no laws. The politically connected can do as they please and the rest of us can be fined or jailed at the whim of those in power.
Absolute tyranny.
Meanwhile, those of us who didn’t get health insurance in time last year because Obamacare kicked us off our plan and complicated the process of getting on another plan have to pay a fine.
This is a revenue decision—foregoing revenue owed to the government. Isn’t that the province of Congress?
This is exactly like the USSR was at all times!!!
Welcome to the USSA!!! (Owned by Demonicrats)
Oh! And just like rural Californians are plagued with by Metro-Sexual rulers in the Blue Voting, crime ridden coastal metropolis dwellers!!!
Just a little editorial addition.
Good call re that addition! Excellent!!!
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