can IRS collect 8962 tax

[schirallicpa]

I think I read some time ago that the IRS will no longer have the authority to pursue this tax.  I have not had any clients in the situation until now, so haven't needed to know for sure.  Does anyone know for sure or have reference.

 

[Lee B]

My understanding is a bit different. The tax is billed and any refunds will be used to offset the tax owed.

I think it was a decision at the Treasury Department level, to not actively pursue collection.

[Abby Normal]

I know they can't pursue collection on the 8965 tax for not having health insurance, because the IRS bills that separately and that's what the ACA law says. But if you got too much APTC and have to pay some back, I'm pretty sure they can pursue that.

[Lee B]

38 minutes ago, Abby Normal said:

I know they can't pursue collection on the 8965 tax for not having health insurance, because the IRS bills that separately and that's what the ACA law says. But if you got too much APTC and have to pay some back, I'm pretty sure they can pursue that.

Specifically, the law allows the IRS 10 years to collect the SRP, however it does not allow late payment penalties, liens, levies or criminal penalties.

[Max W]

The APTC is not exempt from collection activity.  I have one client that went to HRB in 2016 and it was not reported correctly, resulting in having to repay $15K plus penalties and interest.  They had taken some money out of a retirement account and it pushed them about $3K over the 400% poverty line. There have already been some court cases and the finding was that congress did not provide any relief for  this. 

IRS collection notices for the ISRP use the same code numbers (CP 503, CP523, etc) as regular collections letters,  but with a capital H  - CP503H, CP523H.

 

[DANRVAN]

The IRS can not take collection activity on the individual mandate penalty,  but as Max pointed out that has nothing to do with repayment of PTC.