IRS stresses it will enforce health insurance mandate

The IRS in the 2018 filing season will enforce the Patient Protection and Affordable Care Act requirement that most people carry health insurance or risk a fine, the agency says on its website.

The agency says it will automatically reject electronic returns for tax year 2017 that don’t specify if the taxpayer had health insurance. That insurance requirement, known as the individual mandate, is the top target of so-far fruitless efforts by Republicans to repeal the Affordable Care Act.

Under the 2010 health care law, taxpayers are supposed to specify if they had coverage, or if they were eligible for an exemption, or if they will pay the fine. But several million people skip that question and file “silent” returns.

This year, the IRS continued to process such returns. However, taxpayers who skipped the health care question took a chance that they might later get a letter from the tax agency demanding answers.

Last week, the IRS released a new policy saying the health insurance question must be answered upfront on tax returns.

“Taxpayers remain obligated to follow the law and pay what they may owe at the point of filing,” the agency said on its website. With paper returns, processing may be suspended and refunds delayed.

The IRS has gone back and forth on how to treat silent returns.

As former President Barack Obama left office, the tax agency had planned to start rejecting such returns with the 2017 tax filing season. But as one of his first acts, Trump ordered government agencies to provide relief from the Affordable Care Act.

So the IRS decided to keep processing returns that failed to answer the health care question, and follow up later with taxpayers.

Some supporters of the health care law took that as a sign that the IRS would no longer enforce the insurance requirement. Failure to carry coverage can bring a fine of $695, or 2.5 percent of income, whichever is greater. Critics have accused the administration of ignoring the law in an attempt to “sabotage” the Affordable Care Act.