Decision Reverses Previously Announced Policy
Pursuant to a recent executive order, the Internal Revenue Service (IRS) will continue to accept for processing tax returns in instances where a taxpayer does not indicate his or her health coverage status.
The Affordable Care Act requires individual taxpayers to indicate on their IRS Form 1040 whether they had minimum essential coverage for each month, qualify for an exemption, or must make an individual shared responsibility payment. Previously, the IRS announced its intention to begin rejecting tax returns during processing in instances where the taxpayer did not provide that information on his or her Form 1040.
Recent Policy Change
A recent executive order directed federal agencies to exercise all authority and discretion available to them to minimize the economic burden of the ACA. Consistent with that order, the IRS will continue to allow electronic and paper returns to be accepted for processing in instances where a taxpayer does not indicate his or her health coverage status. Though these returns will not be systematically rejected by the IRS at the time of filing, taxpayers remain required to follow the law, and may receive follow-up questions and correspondence from the IRS after the filing process is completed.
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Source: HR 360, Inc.
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