IRS complies with President Trump’s Executive Order -- will not reject tax returns without health care disclosure
02-20-2017Tax Information
After President Donald Trump issued an Executive Order, the IRS announced that it will not reject tax returns just because a taxpayer has not indicated on the return whether the taxpayer had health insurance, was exempt, or made a shared-responsibility payment under Sec. 5000A of the Patient Protection and Affordable Care Act (PPACA).
The PPACA requires taxpayers who do not maintain minimum essential health coverage for each month of the year and who do not qualify for an exemption to pay a shared-responsibility payment with the filing of their Form 1040, U.S.Individual Income Tax Return.
Although the health insurance information requirement has been in effect for a few years, the IRS accepted returns that did not contain the information
For 2016 returns, IRS initiated systems to reject returns that did not provide the information.
After President Trump’s executive order, the IRS has suspended the practice.
The IRS also says it is studying the executive order to determine what other action it must take to comply.
As the IRS pointed out, the requirement for taxpayers to make shared-responsibility payments under PPACA if they do not have health insurance or an exemption is statutory and cannot be changed without legislation.
Therefore, until legislation repealing the requirement is enacted, taxpayers who do not have insurance or an exemption must pay the shared-responsibility payment.