Sunday, February 26, 2017

Taxpayers Will Not Need to Report Obamacare Compliance to Avoid Tax Return Rejection

On January 20, 2017, President Trump issued an executive order directing federal agencies to exercise authority and discretion available to the to reduce the potential burdens of the Affordable Care Act (Obamacare). In accordance with that order, the IRS is now indicating that it will not automatically reject 2016 income tax returns of individuals for failing to provide required information on whether they had health insurance, an exemption from coverage or made a shared responsibility payment. Such rejections were slated to commence for the 2016 filing season.

This does not mean individuals are off the hook for failing to follow the law, including being subject to penalty for failing to have proper coverage.

ACA INFORMATION CENTER FOR TAX PROFFESSIONALS

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