IRS Change Affecting Individual Mandate

The Internal Revenue Service (IRS) has signaled a change in how it monitors compliance with the Affordable Care Act’s (ACA) individual mandate. Under this change, tax returns will no longer be automatically rejected if they do not certify whether the individual had health insurance for the year.

The new IRS policy on accepting “silent returns,” or returns that do not provide health insurance coverage information, is based on President Donald Trump’s executive order directing federal agencies to provide relief from the burdens of the ACA.

The IRS’ policy change does not eliminate the ACA’s individual mandate penalty. Individuals must continue to comply with the ACA’s requirements, including paying any penalties that may be owed.

Despite the continued applicability of the law, many have argued that this policy change will make it easier for individuals to avoid having health insurance coverage, without having to pay an individual mandate penalty. Opponents of the policy change claim that it will erode health insurance enrollment, which could undermine the ACA as a whole.

With the American Health Care Act (AHCA) working its way through the legislative process, filing rules may change abruptly. Brown & Brown D.C. Metro will keep you apprised of any pertinent developments. Until then, continue to follow the ACA mandates.

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