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The IRS/Department of the Treasury ALREADY knows whether he has health care insurance or not. If he has not already received it, he will shortly receive a Form 1095 B which will state that they have no record of him having Health Insurance.
When he ticks off the box on his return that says he HAS health insurance, it will conflict with the IRS's info and will raise a Red Flag...and put him in the audit pile.
It's not nice to fool with mother nature....nor the IRS.
Are they really going to audit everyone who's check marks don't add up?
That will be a couple million won't it? I've been trying to talk him out of this for a while now.
The IRS/Department of the Treasury ALREADY knows whether he has health care insurance or not. If he has not already received it, he will shortly receive a Form 1095 B which will state that they have no record of him having Health Insurance.
When he ticks off the box on his return that says he HAS health insurance, it will conflict with the IRS's info and will raise a Red Flag...and put him in the audit pile.
It's not nice to fool with mother nature....nor the IRS.
Ha ha.
We are getting something called a 1095 C on my job, but we don't have to report it when we file.
Tell your friend if he lies this year, he has 3 years to amend his lie... unless aunt Samantha gets to him first. I heard she's worse than uncle Sam.
There is some form you're supposed to have to send with your tax returns. They didn't require it last year (proof) because there were so many ACA issues, but I remember my accountant saying next year I would need it.
The IRS/Department of the Treasury ALREADY knows whether he has health care insurance or not. If he has not already received it, he will shortly receive a Form 1095 B which will state that they have no record of him having Health Insurance.
The tax person told him he qualified for no breaks. That's why he's submitting it himself.
I don't know what "qualified for no breaks" might actually mean. If he's "working poor" he probably qualifies for something, such as EIC. And unless the tax person actually checked what Obamacare insurance he did qualify for and check the cost/income table for him (which is a fair amount of work) the tax person doesn't actually know.
You see, buried in the language of the 2010 law creating the Affordable Health Care Act (you remember, the “big f*cking deal”) is a bit of an out: There are practically no real consequences for not paying the penalty. I mentioned this to Maggie McGrath, personal finance reporter for Forbes, while shooting video about the Health Care Act earlier this month. “Shouldn’t that be the real story?” she asked.
She’s right, of course. It should but oddly enough, nobody is really talking about it.
Why so quiet? Here’s my guess: nobody has a clue what’s really going to happen. You see, when the Act became news in 2010, rumors were flying about what would happen if you didn’t pay the penalty. It was politically tricky. The consequences needed to be enough to make you want to conform with the Act but not so onerous that Congress would be loathe to vote for it.
The final language in the Act declared that the penalty “shall be paid upon notice and demand” which sounds really intimidating. The language went on to note that the penalty would be “collected in the same manner as an assessable penalty under subchapter B of chapter 68″ which also sounds pretty serious – especially since subchapter B references some pretty nasty penalties for otherwise not complying with other sections of the Tax Code.
So what would the penalty for noncompliance be? Jail time? Nope. The language in the Act specifically rules out jail time, saying at Section 500A(g)(2)(A):
In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.
So, no jail time.
But that means that the IRS will chase you and lien your property if you don’t pay, right?
Nope. That’s not allowed under the Act. At 500A(g)(2)(B)(i), the Treasury cannot “file notice of lien with respect to any property of a taxpayer by reason of any failure to pay the penalty imposed by this section.”
So, no liens.
Then, clearly there will be levies or seizures on your wages and account, right?
Nope. Not that either. Under 500A(g)(2)(B)(ii), the Treasury cannot “levy on any such property with respect to such failure.”
To recap then, by law, you have to pay the penalty. But if you don’t, you won’t go to jail, you won’t be liened and you won’t be levied for collection.
Is there anything that could happen to you if you choose not to pay? With no jail, no liens and no levies, it doesn’t leave the IRS a lot of room to work when it comes to collections. Congress actually managed to create, as I wrote in 2012 and in in 2013, an incredibly complex and burdensome law without any teeth.
Well, maybe some teeth. Baby teeth. The IRS might seize any part or all of your refund in order to satisfy your obligation. Might. IRS hasn’t come right out and said that it absolutely will offset your refund if you owe a penalty for failure to pay. However, in the Final Regulations issued on this matter, IRS noted that “[n]othing in this section prohibits the Secretary from offsetting any liability for the shared responsibility payment against any overpayment due the taxpayer, in accordance with section 6402(a) and its corresponding regulations.” That’s sufficiently passive aggressive, right? You’re on notice that the IRS doesn’t think that it’s barred from taking your refund. They’re not saying they will (for certain) but they’re not saying they won’t either.
So is there anything you can expect for sure? You can definitely expect a lot of letter writing and virtual shaking of the government’s fist at you. Maybe even some blustering, for good measure.
But real consequences? Other than that potential refund seizure and a guilty conscience, there’s nothing to keep taxpayers from opting out of paying. Will they? We’ll have to wait and see.
We got forms in the mail to submit with taxes proving we have insurance coverage.
It is also taken out MOH's paycheck as proof.MOH has a high deductible plan.
the W2 may also show it:
from the IRS website: Employers that are subject to this requirement should report the value of the health care coverage in Box 12 of the Form W-2, with Code DD to identify the amount. There is no reporting on the Form W-3 of the total of these amounts for all the employer’s employees
If his doesn't show it, he will be asked.
Its like driving without a license, its illegal, but only a problem if one gets caught. When he gets caught he won't like it.
He will need to PROVE he has it as they WILL begin cross-reference the coverages beginning this year as I understand it.
The supreme court upheld the so called Obamacare, so it is the law of the land. Like any other law, he has to obey.
AS someone said, it is not nice to fool the government.
He could lose more than 2 weeks pay.
ANd at 29 hours, there is 11 hours a week he could be working a SECOND job to makeup to the 40 hours a week and PAY for insurance. That will be the government's stand. Even at the Fed minimum wage of $7.25/hour, those 11 hours brings $79.75 a week or $319 a month [more in a 5 week month} or nearly $4k a year...that can buy insurance.
He needs to suck it up, get a second job and FOLLOW THE LAW for healthcare.***
***yes I understand what it is like to be poor, homeless and on welfare, so don't tell me i don't understand. REad some of my other posts in other threads if you really want to know more about my past situation. Last year ALONE, with MOH needing surgery, and with the high deductible plan, we spent 52% of our gross income on health care costs.THAT left us with far less than poverty level for the year's net income.
he already has a 2nd job that he hustles back and forth to that pays ****. Dude just doesn't have skills that command any kind of a decent wage. Uber small in stature as well so forget about the dumb "strong guy" jobs...
I don't know what "qualified for no breaks" might actually mean. If he's "working poor" he probably qualifies for something, such as EIC. And unless the tax person actually checked what Obamacare insurance he did qualify for and check the cost/income table for him (which is a fair amount of work) the tax person doesn't actually know.
Jesus christ...
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