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IRS to block, suspend tax returns that lack Obamacare disclosures
CNBC ^ | 10/20/2017 | Dan Mangan

Posted on 10/20/2017 6:34:58 AM PDT by Red Badger

The IRS says it will not accept electronic tax returns that do not disclose whether the filer had health insurance coverage during the year.

It also says it will suspend paper returns that do not have the disclosure.

The IRS' move, which will bolster compliance with Affordable Care Act rules, comes as the Trump administration takes other steps to undercut the law.

The IRS is warning tax professionals that it will block or suspend processing of 2017 income tax returns that do not comply with Obamacare rules requiring filers to disclose their health insurance status.

The new move to tighten Americans' compliance with the Affordable Care Act comes even as the Trump administration takes steps to undercut it.

"Taxpayers remain obligated to follow the law and pay what they may owe at the point of filing," the IRS said in a description of the new policy.

The ACA requires most people to have some form of health insurance coverage or pay a tax penalty — a requirement known as Obamacare's individual mandate.

That penalty is the higher of 2.5 percent of adjusted gross household income or $695 per adult and $347.50 per child under age 18.

The agency, in an online notification to tax professionals, said that in the upcoming tax filing season "the IRS will not accept electronically filed tax returns where the taxpayer does not address the health coverage requirements of the Affordable Care Act."

"Returns filed on paper that do not address the health coverage requirements may be suspended pending the receipt of additional information and any refunds may be delayed," the IRS said.

Income tax returns contain a box that asks filers if they had health coverage during the year.

If they indicate they did not have coverage, filers must indicate on what grounds they are exempt from the mandate or say they will pay and then calculate the penalty for not complying.

The IRS said it will not accept electronically filed returns until a tax return addresses those points.

There are several possible exemptions from the mandate, 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.


TOPICS: Breaking News; Business/Economy; Culture/Society; Government
KEYWORDS: affordablehealthcare; healthcare; irs; irsobamacare; obamacare; penalty; repeal; tax; trump; trumpirs; trumpirsobamacare
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To: Sasparilla
I thought Trump ordered the IRS to accept all returns. Even without the disclosures. Who has gone rogue? the IRS OR DJT?

That was my first thought. It is Trump's IRS now. He's the boss. He either causes or allows it to happen.

21 posted on 10/20/2017 6:56:30 AM PDT by plain talk
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To: Red Badger
The disclosure is squirreled away in a sub section on a little box on the 1040. Not hard to miss IMO. IRS needs to get out of policing Obamacare
and be abolished.
22 posted on 10/20/2017 6:56:58 AM PDT by wardamneagle
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To: Red Badger
Ironic since they can only collect for non-compliance if they owe a refund....the deep state swamp has rancid estuaries everywhere.

Of course, if the GOPe RINOs would do their job and stick a stake in the heart of Obama Care and do tax reform, we wouldn't have this unconstitutional crap going on....

23 posted on 10/20/2017 6:57:12 AM PDT by trebb (Where in the the hell has my country gone?)
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To: CodeToad

Bonuses are paid to IRS managers for enforcing the penalties. Remove the bonuses. There should not be bonuses paid on amounts collected to IRS managers. It incentivizes abuse of taxpayers.


24 posted on 10/20/2017 6:57:29 AM PDT by blackdog
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To: LostPassword

And that’s why I’ve always hoped the IRS would deduct the penalty from any tax refund that may be due, or issue a bill for unpaid tax liability (since that’s what the Scotus says the Obamacare mandate is). There is no faster way to trigger an anti-Obamacare revolt.

This doesn’t go that far, but it still works to Trump’s benefit.


25 posted on 10/20/2017 6:58:58 AM PDT by bigbob (People say believe half of what you see son and none of what you hear - M. Gaye)
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To: Red Badger

First the judges then the IRS. The coup is progressing.


26 posted on 10/20/2017 6:59:40 AM PDT by Raycpa
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To: Red Badger

The IRS is a leftist front organization. This is how they “resist” our duly elected president.


27 posted on 10/20/2017 7:00:54 AM PDT by fwdude (The perverted left-bound train is always accusing the train station of "moving right.")
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To: Red Badger

The Deep State strikes back. Proves that the IRS and the CIA are the two most powerful government entities in America. Followed by the FBI. Notice, NOT the President or Congress, or even the activist judiciary.


28 posted on 10/20/2017 7:01:27 AM PDT by backwoods-engineer (Trump won; we got Gorsuch and a bit of MAGA. Likely have a civil war before we get more.)
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To: madison10
Talk about unconstitutional. They think they are the Obamacare police.

According to the law as passed by Congress and upheld by the USSC (thanks to John Roberts...) the IRS *is* the Obamacare police.

They're doing exactly what the law requires them to do and unless Obamacare is REPEALED by Congress and signed by President Trump this is going to continue.

That's just the fact.

29 posted on 10/20/2017 7:03:05 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: x1stcav
Lamppost. Rope. Time to start putting some fear into the ruler’s enforcers.

Finally! Someone who speaks my language!! (See my tagline, it's been there for almost 12 years now ..)

30 posted on 10/20/2017 7:05:25 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Red Badger

It is not wrong to lie to avoid being forced to commit an unconstitutional act.


31 posted on 10/20/2017 7:06:31 AM PDT by Az Joe (Gloria in excelsis Deo)
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To: Red Badger
The IRS' move, which will bolster compliance with Affordable Care Act rules, comes as the Trump administration takes other steps to undercut the law. [emphasis added]

Talk about editorial slant! So requiring compliance with a law is considered undercutting? Wouldn't that mean the law is undercutting itself? Was not the theory that the only to make health insurance "affordable" was to coerce the young, healthy citizens to kick in their premiums to pay for the costs of everyone else? I would think administratively waiving the signature penalty provisions would be the undercutting move.

Logically speaking, Øbama undercut the law by allowing taxpayers to avoid the penalty and the tax return perjury trap by refusing to answer the insurance question. That undercuts the vaunted (and cooked) CBO scoring that allowed the RATS to pass this atrocity.

Kudos to Trump that the best way to help kill ACA is to actually fully implement it as written.

32 posted on 10/20/2017 7:08:40 AM PDT by NonValueAdded (#DeplorableMe #BitterClinger #HillNO! #cishet #MyPresident #MAGA #Winning #covfefe)
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To: Red Badger

Thanks again to JUSTICE ROBERTS! *SPIT*


33 posted on 10/20/2017 7:09:27 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set!)
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To: LostPassword

eggszactly


34 posted on 10/20/2017 7:11:03 AM PDT by NonValueAdded (#DeplorableMe #BitterClinger #HillNO! #cishet #MyPresident #MAGA #Winning #covfefe)
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To: Diana in Wisconsin

Bush Appointee...............


35 posted on 10/20/2017 7:14:18 AM PDT by Red Badger (Road Rage lasts 5 minutes. Road Rash lasts 5 months!.....................)
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To: Red Badger

The IRS wants the healthcare Shared Responsibility Payment system to continue because they can charge penalties and interest on late payments. It is a huge money-making issue for them.


36 posted on 10/20/2017 7:15:00 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Red Badger

I just filed 2016 and paid five months of the penalty for going uninsured. The penalty was a lot less than the insurance.


37 posted on 10/20/2017 7:15:25 AM PDT by Lisbon1940 (No full-term Governors (at the time of election!)
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To: fwdude
The IRS is a leftist front organization.

You have no idea how true that statement is. Or, at least, others don't know how true it is.

38 posted on 10/20/2017 7:16:11 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: LostPassword

The best way to get a bad law repealed is to enforce it strictly.
Abraham Lincoln


The IRS may actually be on Trump’s side here. They are ramping it up as congress is trying to repeal. This will apply some pressure.

They touch on that here:

http://www.iwf.org/blog/2805014/IRS-to-Hold-Tax-Returns-Hostage-to-Enforce-Obamacare


39 posted on 10/20/2017 7:17:37 AM PDT by robroys woman (So you're not confused, I'm male.)
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To: txrefugee
Is President Trump going to stand for this? The do-nothing Congress should IMMEDIATELY pass the tax reform bill making it retroactive to 2016, declaring Obamacare penalties null and void. Barring this action on the part of the patsies in Congress, Obama changed the Obamacare rules several times by executive order, so President Trump should do the same.

How about a contrary perspective. The ACA was a law passed by congress and signed by Obama. If we are a nation of laws, they must be followed. I believe it was Obama that told the IRS not to enforce the penalty (or tax, or whatever you want to call it) for political reasons. Now under Trump, the administration is just upholding thew law.

I think if the people of this country voted the democrats in that got this law passed, and they don't like the ramifications of having to pay the penalty, "F" them until they vote the democrats out.

That said, some of the democrats were voted out, and the republicans said they would repeal and replace Obamacare. Well, they haven't done it. So now its up to the obstructionist republicans to be primaried.

40 posted on 10/20/2017 7:21:33 AM PDT by Go Gordon
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