IRS May Withhold Tax Refunds To Enforce Health Insurance Mandate!

Submitted by SadInAmerica on Thu, 04/15/2010 - 11:56pm.


The Internal Revenue Service won't audit you to make sure you have purchased health insurance under provisions of the new health-care law--but it may withhold your tax refund if you can't demonstrate that you are insured, an IRS official said Thursday. (What a money making scam... more like Obamacare entrapment! You will comply... and like it!~ S.I.A.)

Steven T. Miller, IRS Deputy Commissioner for Services and Enforcement, made the comments during a hearing of the Senate Finance Committee. He echoed earlier comments by IRS Commissioner Doug Shulman that questions about health coverage  won't in and of themselves lead to an IRS audit.

"There are tools we can use. We obviously will be notifying folks [for whom there is no record of health insurance] that we have these questions," said Miller. "We have a refund offset mechanism in order to enforce that provision."

Republicans on the Finance Committee including Sens. Charles Grassley of Iowa and Pat Roberts of Kansas, questioned whether the IRS will even have the ability to make sure the insurance mandate is enforced.

Under the new law, penalties for failure to purchase health insurance apply starting in 2014. By 2016, the penalty for lacking qualifying insurance is the greater of $695 per year, or 2.5% of household income up to $2,085.

Those who aren't required to file a tax return because their income is below the filing threshold--for 2009, $9,350 for individuals and $18,700 for married couples--aren't subject to penalties.

Under the new law, insurance providers will be required to provide a 1099 information return to the taxpayer and the IRS demonstrating that the individual is covered. The IRS will use document matching to identify people without coverage, and will notify those taxpayers that they may owe penalties.

The law doesn't authorize the IRS to impose liens or levies to collect the penalties. But it doesn't prevent the IRS from reducing a tax refund to collect the penalty, Miller said.


Martin Vaughan - April 15, 2010 - posted at FoxBusiness


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Submitted by SadInAmerica on Thu, 04/15/2010 - 11:56pm.