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IRS to Block 2017 Tax Returns that Lack Obamacare Disclosures


The Internal Revenue Service (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 (ACA) 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% of Adjusted Gross Household Income or $695 per Adult and $347.50 per Child under 18.

The Agency, in an Online Notification to Tax Professionals, said that in the Upcoming 2017 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, in the Other Taxes Section-Box 61, that asks Filers if they had Health Coverage during the year.

If the Filer indicates 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.

Exemptions from the Mandate:

- Lacking Access to Affordable Health Coverage
- Being Homeless
- Getting Evicted
- Experiencing Domestic Violence
- Experiencing the Death of a Family Member
- Filing for Bankruptcy

The IRS said it will Not accept Electronically Filed Returns until a Tax Return Addresses these Points, if the Health Coverage Box is not Checked.









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This post first appeared on The Independent View, please read the originial post: here

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IRS to Block 2017 Tax Returns that Lack Obamacare Disclosures

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