IRS could tap refunds for health insurance penalties

Reuters ^ | 04/06/10

[NativeNewYorker]

WASHINGTON, April 5 (Reuters) - The Internal Revenue Service could tap individual tax returns to collect fines against people who fail to buy health insurance as required under recently enacted healthcare legislation, the U.S. tax commissioner said on Monday.

Most individuals are required to get health insurance under the new law, or face penalties that would be phased in over time. By 2016, people without coverage could see fines of 2 percent of their income.

Subsidies would help poorer people buy coverage, and states would set up exchanges to allow individuals and small groups shop for insurance.

People who do not comply would be levied penalties, and if they don't pay them the penalties could be taken out of their tax refunds.

"There has been some insinuation about how we are going to approach our job," IRS Commissioner Douglas Shulman said after speaking at the National Press Club. Under the new law, the IRS cannot seize assets or levy fines, so Shulman said refunds were the most obvious option to collect penalties.

[bunkerhill7]

Indisputably unconstitutional.

[Pollster1]

Go ahead, socialists. We’ll just under-withhold. Anyone smart enough to know that ObamaCare is a terrible deal is smart enough to file a W-4. BTW, I personally have health insurance at this time. That was a free choice between a free American and a company that was free to do business with me or not at their discretion, entirely different from the coerced compliance on the part of both the individual and the company that is demanded by Obama/Pelosi.

[The Sons of Liberty]

The solution to this problem is to ensure that you have no refund coming.

Of course, by then no one will be working, so no problemo (got to start working on my espanol - immigration "reform" is next.)

[Doogle]

IRS could tap refunds

IRS WILL tap refunds

[GeronL]

Like we didn’t see that coming.

[E. Pluribus Unum]

"Citizens suck. They must be punished."

[Oldeconomybuyer]

"You will not see any of your taxes increase one single dime."

-Barack Hussein Obama

[dawn53]

We never get a refund, always owe at the end of the year. But there are lots of folk who somehow view their refund as some type of savings account or gift from the gov’t (and in the case of tax credits, it is.) Wait till they get a load of this.

[ladyvet]

The solution to this problem is to ensure that you have no refund coming.

We changed our withholding last week. FUBO!

[Oceander]

Simple solution. Intentional underwithholding.

[oh8eleven]

IRS could tap refunds ...
Everyone should be adjusting their withholdings via a W-4 form so they owe money at the end of the tax year.

[Buckeye McFrog]

Heard a radio interview this morning with Roni Deutch, the tax attorney often seen in late night TV ads. She was explaining how many tax implications there were to this Obamacare bill that the general public has no idea about. And when they turn the IRS loose as the enforcement agents people are going to explode in anger.

[FrdmLvr]

What station was she on? Can you post the link to the interview or the station? Thanks.

[Marty62]

People were being warned of this BEFORE the HCR Bill was voted on and signed.

NOW the mindnumbed kool-aid drinkers can come out of their stupor and hope for an antedote.

[Joy in the Journey]

The IRS commissioner says otherwise.

http://www.jsonline.com/news/statepolitics/89967547.html

[Eric in the Ozarks]

‘zackly.

[maine-iac7]

Until the behemoth is beaten - What if a person declared MORE dependents than they actually have - giving them more net pay per check - (calibrated so’s there would be NO plus tax return at the end)- and putting that extra into an envelope every paycheck...keeping their ‘net’ to what it would have been in declaring the right amount or none - and then at tax time, the extra money is in YOUR envelope, rather than in gov’t’s where they can grab it?

[hondact200]

wait a minute. How can the IRS state refunds. Think about it with all the taxes will there be NO such a thing as a REFUND.

[maine-iac7]

In a speech at the National Press Club, Shulman noted that the new health care measure expressly bans the IRS from seizing assets or pursuing criminal charges against people who don't pay their fines. The agency could, however, garnishee people's future tax refunds as a form of payment, he said.

and if they see people start to change their withholding so that nothing is left at the end of tax season for them to grab - how long will it take for them to pass a law criminalizing that?