Anthony Sykes & Company

          It has now been made official. The IRS will NOT accept Federal Tax Returns that do not answer the questions about health coverage under the Affordable Care Act. This change in policy will go into effect next year, for the upcoming Tax Season. This is a significant move on the part of the IRS.           In the past, this requirement had been something of a gray area. Due to a variety of factors, the IRS has been processing Tax Returns where individuals have not shown that they have health coverage. However, they would still apply a penalty to these Taxpayers. Even so, in these situations a Tax Refund would still be issued, a little later than most. That will no longer be the case. As it stands, the ACA is still in place, and the IRS will apply its obligations under the law to all Taxpayers. Even if it means suspending or rejecting the processing of a Tax Return until it gets an answe...

The IRS has stated that filling out line 61 on Federal Tax Returns is no longer required. What is the significance of this 1 line? This was the line that was added due to the Affordable Care Act ( Obamacare ) and its requirement that all carry health coverage. In the past, if the answer was “No”, there would be a penalty given. If an answer was not given, it would be considered a “silent return” and rejected.           All returns filed this year will be treated differently. Taxpayers may continue answer the question, but if they do not, their returns will continue to be processed. This is most likely due to an Executive Order signed on the first day of the Trump administration. Keep in mind that the Affordable Care Act is still in effect and any Returns that withhold information from Line 61 could still be penalized at a later date.