IRS News: Feds May Withhold Tax Refunds to Enforce Health Insurance Mandate
Under the new health care mandate, the IRS has authority to withhold a portion of your federal tax return if you can’t demonstrate that you have health insurance coverage.
Starting in 2014, penalties for lacking qualifying coverage will range from $695 to 2.5% of your household income, whichever is greater. According to a recent Fox Business article, Steven T. Miller, IRS Deputy Commissioner for Services and Enforcement, commented that the IRS can reduce a tax refund to collect the penalty.
The article titled “IRS May Withhold Tax Refunds To Enforce Health Insurance Mandate” also stated:
Under the new law, insurance providers will be required to provide a 1099 information return to the taxpayer and the IRS demonstrating that the individual is covered. The IRS will use document matching to identify people without coverage, and will notify those taxpayers that they may owe penalties. …The law doesn’t authorize the IRS to impose liens or levies to collect the penalties. But it doesn’t prevent the IRS from reducing a tax refund to collect the penalty.
Even though the IRS says they won’t audit you, your tax returns will be under greater scrutiny in the coming years. Increased IRS enforcement is a certainty, and now is the time to take action and get it right. IRS scrutiny from all angles also includes a Whistleblower Program that rewards people for reporting tax evasion.
Don’t wait for an IRS audit. If you have unfiled tax returns or need tax help to become compliant with the IRS, get tax relief services from a tax attorney or Certified Tax Resolution Specialist today. The pro-active approach is to take advantage of tax relief services if you owe back taxes or think you might not be in compliance.
Tax Resolution Services are experts in tax relief and can help you come into full legal compliance with the IRS. If you owe $15,000 or more in back taxes or have delinquent tax returns, visit www.TaxResolution.com or call 1-866-IRS-PROBLEMS for a free tax relief consultation.
More Tax Help, IRS News and Tax Relief Tips:
- How to Get IRS Tax Relief from Back Taxes or Unfiled Tax Returns
- Michael Rozbruch Interviewed in Opportunist Magazine
- Treasury Proposes Multilateral Agreement for Offshore Compliance
- Tax Help News: IRS Enforcement to Get Priority, Big Bucks in 2010
- It’s Not Too Late for Taxpayers with Unfiled Tax Returns to Resolve IRS Problems
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