IRS Not Accepting Tax Returns Lacking Health Care Disclosure

Posted at 11:26 am on 10/31/2017 by Nimble Reporting
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 year.

·        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 status.

The new move to tighten Americans' compliance with the Affordable Care Act 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 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.

If 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.

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