IRS WILL REJECT TAX RETURNS WITHOUT PROOF OF HEALTH INSURANCE

According to the NYT, the IRS said they will be rejecting any tax returns submitted online if the filers does not fill out the forms that indicate whether you have health insurance. As a result, you could be denied your refund without indicating this information.

The Why: The tax penalty for lack of health insurance has been controversial and this is the first time the IRS will enforce this rule. Also, it’s a small sign that Trump’s administration is keeping some parts of the Affordable Care Act alive, despite Trump’s repeated claims that it’s dead.

Why Now: The IRS wanted to assess the effects of Trump’s EOs before rejecting returns without insurance information. Families can face up to $2,085 penalty and individuals could pay as much as $695 each year for the tax penalty without providing insurance information.

Looking Back:Trump’s very first Executive Order suggested his admin could halt the tax penalty for insurance. And he has flip-flopped on health care numerous times this month alone. He rolled out another Executive Order earlier this month advocating for the sale of skinnier health plans to small businesses and individuals — on the same day that he announced he’d end subsidies for low-income people. And he changed his mind on the bipartisan proposal to provide “short-term stability to insurance marketplaces under the law,” NYT notes.

 

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