By: Jordan Schreier
On January 20, 2017, President Trump issued an executive order allowing government agencies to waive any part of the ACA that would impose a tax penalty or regulatory burden on individuals or families. In response, the IRS stated that, as in past years, it will not reject a 2016 tax return if the qualifying health care coverage question was not answered.
Despite this, the individual health coverage mandate is still the law and individuals without qualifying health care coverage who cannot claim an exemption would still owe the SRP. However, without the Form 1040 information, the IRS has no direct way to know whether a taxpayer had coverage or paid the SRP for 2016. The IRS stated that it would follow up with taxpayers if it has questions about their returns. Any taxpayer considering not fully complying with qualifying health coverage requirements should consult with their tax advisers.
For more information, please contact Jordan Schreier in our Ann Arbor, Michigan office at 734 -623-1945