Penalty Collections - ACA

[Edsel]

It was my understanding that when Trump took office, some kind of executive order directed the IRS not to enforce collection of ACA penalties.  Everyone thought this was going to be a little-thought factor at the time, since it was assured that congress was going to do a slam-dunk to Obamacare and put a merciful end to it.

Six months later, and the "slam-dunk" hasn't happened and if it ever does, no one knows how much different "Trumpcare" will be compared to "Obamacare."  My software company never jumped on the wagon to eliminate the ACA penalties and I'm told none of the other tax software packages did either. 

So....word of the non-collection has spread to our clientele, and more and more of them are now telling us not to compute the penalty.  

What say ye??  Better not wait on congress! 

 

[Possi]

4 hours ago, Edsel said:

"more and more of them are now telling us not to compute the penalty." 

 

 

"Them" don't tell me how to do my job. Penalties apply. If it's repealed and they back up the truck, everyone will get their money back.

Edited July 3, 2017 by jklcpa
for clarity, reply was moved out of the quote box

[rfassett]

The law is the law.

And until the law is officially changed, we must abide by the law.

[Abby Normal]

We are in the limbo of the IRS saying you can file without self-assessing the penalty but the IRS may assess the penalty for you... BUT they can not enforce collection of the penalty (which is not new).

[RitaB]

12 minutes ago, Abby Normal said:

We are in the limbo of the IRS saying you can file without self-assessing the penalty but the IRS may assess the penalty for you...

And I bet they don't.  So we all look like incompetent schmucks compared to the preparers who advised all their clients owing SRP to ignore the question on line 65.  And some days I feel like one, too. 

[Gail in Virginia]

However, once they assess the penalty they can take it from any refund due.  So those preparers who advised their clients to ignore the question on line 65 might be explaining next year why they did not get the refund they were expecting.

[RitaB]

3 hours ago, RitaB said:

And I bet they don't.  So we all look like incompetent schmucks compared to the preparers who advised all their clients owing SRP to ignore the question on line 65.  And some days I feel like one, too. 

Line 61.  See, that was a schmuck thing right there.

[Abby Normal]

Schmucker.

[Gail in Virginia]

53 minutes ago, RitaB said:

Line 61.  See, that was a schmuck thing right there.

And I stepped right in the schmuck.

 

[easytax]

35 minutes ago, Abby Normal said:

Schmucker.

I like the strawberry preserve kind from them the best ...

[DANRVAN]

On ‎07‎/‎03‎/‎2017 at 10:26 AM, Gail in Virginia said:

However, once they assess the penalty they can take it from any refund due.  So those preparers who advised their clients to ignore the question on line 65 might be explaining next year why they did not get the refund they were expecting.

My clients have been advised in writing. They have also been advised they are not required to check the box due to an executive order and IRS notice. (for further discussion see the thread on this forum "What's the latest on the silent tax return regarding health insurance".

It looks like the executive order providing relief from the health care coverage penalty is not only executive order the IRS is taking seriously (per Notice 2017-38, 2017-30 IRB, 07/07/2017, IRC Sec(s). 7805.).

I am hearing complaints from taxpayers who were not informed of their options under the executive order providing relief from the health care penalty.