How Affordable Care Act Rules Affect Your Taxes

Come tax time many Americans will learn more of the ins and outs of Obamacare, more forms, more filings, exceptions, waivers and forgiveness. Below is one example – the penalty without teeth and easily avoided. However, there is plenty of room for confusion … and it’s coming at you

You may want to read the full story at the NYTs link below. It’s quite informative.  

Will the I.R.S. come after me if I refuse pay the penalty?

The I.R.S. is not permitted to resort to its usual collection tactics, such as using levies — like wage garnishment — or liens to collect the penalty. It cannot criminally prosecute those who do not comply, either.

But the agency can deduct the penalty from any refunds due. And if you are not owed a refund, the penalty will roll over — and accrue interest — for 10 years, which is the I.R.S.’s statute of limitations for collecting payments.

Starting in the 2015 tax year, the I.R.S. will have a stronger system of checks, which will notify the agency about who had health coverage and who did not, because employers and insurers will be required to send that information to the I.R.S. That machinery is not fully in place for this tax year.

via How Affordable Care Act Rules Affect Your Taxes – NYTimes.com.