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IRS Won't Reject Tax Returns That Don't Answer Health Insurance Question?


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#1 Jamie Weaver

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Posted 15 February 2017 - 09:31 AM

"The tax agency has stopped requiring individual filers to indicate whether they maintained health coverage or paid the mandate penalty as required under the law..."

 

Now, I'm in no way shape or form telling you how to file your taxes, but this is information that could save you money or impact your return.  Consult your CPA.  The article appears to originally been published by Reason.com and has since had a correction that doesn't explain the impact of their error.

 

 

 

Correction: The IRS did not reject silent returns last year, as this story originally indicated. The plan was to go into effect this year, for 2016 returns, but the IRS reversed course on February 3Reason regrets the error.

 

A few forums and alternative sources have ran with story, but not the correction.

 

http://reason.com/bl...ividual-mandate

 

 

Following President Donald Trump's executive order instructing agencies to provide relief from the health law, the Internal Revenue Service appears to be taking a more lax approach to the coverage requirement.

 

The health law's individual mandate requires everyone to either maintain qualifying health coverage or pay a tax penalty, known as a "shared responsibility payment." The IRS was set to require filers to indicate whether they had maintained coverage in 2016 or paid the penalty by filling out line 61 on their form 1040s. Alternatively, they could claim exemption from the mandate by filing a form 8965.

 

For most filers, filling out line 61 would be mandatory. The IRS would not accept 1040s unless the coverage box was checked, or the shared responsibility payment noted, or the exemption form included. Otherwise they would be labeled "silent returns" and rejected.

Instead, however, filling out that line will be optional.

Earlier this month, the IRS quietly altered its rules to allow the submission of 1040s with nothing on line 61. The IRS says it still maintains the option to follow up with those who elect not to indicate their coverage status, although it's not clear what circumstances might trigger a follow up.

But what would have been a mandatory disclosure will instead be voluntary. Silent returns will no longer be automatically rejected. The change is a direct result of the executive order President Donald Trump issued in January directing the government to provide relief from Obamacare to individuals and insurers, within the boundaries of the law.

"The recent executive order directed federal agencies to exercise authority and discretion available to them to reduce potential burden," the IRS said in a statement to Reason. "Consistent with that, the IRS has decided to make changes that would continue to allow electronic and paper returns to be accepted for processing in instances where a taxpayer doesn't indicate their coverage status."

The tax agency says the change will reduce the health law's strain on taxpayers. "Processing silent returns means that taxpayer returns are not systemically rejected, allowing them to be processed and minimizing burden on taxpayers, including those expecting a refund," the IRS statement said.

 

Please disregard the political nature of the content.  The OP is intended to be informative for those it may impact.

 

On a side note, NPR had an article prior to this article advising not to skip paying the tax.

 

http://www.npr.org/s...tax-penalty-now

 

- Jamie


Edited by Jamie Weaver, 15 February 2017 - 09:32 AM.

"I have always tried to [tell the truth], but the Russians made me do it."  - Hillary Clinton

 

 

 


#2 mrshoward

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Posted 15 February 2017 - 09:42 AM

Side note : If your premiums total more than 9% of your income, 

you can file an exemption with the IRS and eliminate the penalty.

 

 

;)


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#3 The Postman

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Posted 18 February 2017 - 11:40 PM

Donald Trump has the best CPA. He knows how to save you on taxes big time. You might not have have to pay a dime for many years.  


Edited by The Postman, 18 February 2017 - 11:40 PM.

"The rich alone use imported articles, and on these alone the whole taxes of the General Government are levied. ... Our revenues liberated by the discharge of the public debt, and its surplus applied to canals, roads, schools, etc., the farmer will see his government supported, his children educated, and the face of his country made a paradise by the contributions of the rich alone, without his being called on to spend a cent from his earnings." ~ The Chief Author of our Declaration of Independence

#4 kp527

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Posted 19 February 2017 - 05:14 PM

Donald Trump has the best CPA. He knows how to save you on taxes big time. You might not have have to pay a dime for many years.  

 

Intelligent people only pay the taxes that are legally required by law.  Do you send the IRS extra money for the fun of it ????  Hmmmm, didn't think so.   People that can't grasp the concept of Trump's loss carryforward on his tax returns are people who know little about how having multiple privately held businesses work in the overall tax return of the individual.

 

The real winners in the tax return lottery are the people who live as a family, you know man, woman a couple of kids.  Don't worry about getting married and then file separate returns,  both claim head of household with a child and get $4 to 5 thousand dollars back each.  Very criminal, yet very common !!!!



#5 Rocky's Mom

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Posted 19 February 2017 - 05:40 PM

Intelligent people only pay the taxes that are legally required by law.  Do you send the IRS extra money for the fun of it ????  Hmmmm, didn't think so.   People that can't grasp the concept of Trump's loss carryforward on his tax returns are people who know little about how having multiple privately held businesses work in the overall tax return of the individual.
 
The real winners in the tax return lottery are the people who live as a family, you know man, woman a couple of kids.  Don't worry about getting married and then file separate returns,  both claim head of household with a child and get $4 to 5 thousand dollars back each.  Very criminal, yet very common !!!!


it strikes me that people are more than willing to take trumps word that he is, in fact, being audited. He could easily produce proof of this but to date he has not.

Things that make you go hmmmmmm.

http://www.newsweek....t-letter-488904
"There comes a time in your life, when you walk away from all the drama and people who create it. You surround yourself with people who make you laugh. Forget the bad, and focus on the good. Love the people who treat you right, pray for the ones who don't. Life is too short to be anything but happy. Falling down is a part of life, getting back up is living."




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