IRS to block, suspend
tax returns that lack health care disclosures
The IRS says it will not accept tax returns
that do not disclose whether the filer had health insurance coverage during the
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 the ACA rules requiring filers to disclose their health insurance
new move to tighten Americans' compliance with the Affordable Care Act comes
even as the Trump administration takes steps to undercut it.
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.
ACA requires most people to have some form of health insurance coverage or pay
a tax penalty — a requirement known as the individual mandate. The 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.
an individual indicates they did not have coverage, filers must specify on what
grounds they are exempt from the mandate, or state they will pay the penalty
for not complying. 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.