IRS Reacts to to Presidential Order Gutting the Affordable Care Act.
The IRS has announced that electronic and paper returns will no longer be rejected and not processed for failing to the answer to the question, “Did the taxpayer have health insurance coverage for the entire year.” This announcement by the IRS is the result of the president’s executive January 20 order gutting the Affordable Care Act. U.S. citizens and legal residents are still required to maintain minimum essential health insurance coverage. Failure to do so without a valid exemption still may result in a significant penalty.
Although the IRS is not requiring the information to be provided on the return, the ACA law is still in force. What this means is that the IRS will no longer be participating in enforcement of the ACA provisions requiring minimum essential health insurance coverage. The individual insurance “mandate” which is no longer being enforced has been considered necessary by most policy experts to give the individual insurance pools sufficient economic strength to provide a reasonable level of benefits at a reasonable cost.
This action effectively kills our national health insurance scheme. There is no plan for replacement.
– Mark S Gleason CPA