IRS Has no authority to force payment on ACA Penalty

With tax preparation season underway, I note that my H&R Block tax software seems to indicate that if you owe a tax for NOT having a qualified health insurance policy, then you must own up and pay the tax.

Not so fast. If you had too much of your income with-held and are owed a refund (known as your money) the IRS CAN deduct an ACA penalty from that refund (stealing your money. BUT, if your penalty exceeds your refund, the IRS has no statutory authority to collect.

This section is for comments from tammybruce.com's community of registered readers. Please don't assume that Tammy agrees with or endorses any particular comment just because she lets it stand.
2 Comments | Leave a comment
  1. dennisl59 says:

    Found this calculator for the penalties:

    http://taxpolicycenter.org/taxfacts/acacalculator.cfm

    posted 1/29 855am Texas[More Money]Time

  2. Alain41 says:

    Correct that IRS has no statutory authority to collect ACA penalty if you’re not owed a refund, BUT that’s why IRS issued a regulation that it could put a lien on your home and take away your driver’s license. Republican congressman and staff will tell you (correctly but) that the law only authorizes financial penalty, does not authorize other penalties such as home liens and revocation of driver’s license. However that’s based on legal precedent/theory up to Obama that gov’t agencies only had that authority that was explicitly given to them in the law. Obama/Democrats chose to jettison that long established legal basis and govern by, agencies have all authority except that explicitly denied to them in law. Since ACA does not deny liens/revocations, QED says IRS under Obama. So not paying ACA penalty could end up with home lien and guess how fast IRS will act to get rid of that. Not to mention penalties on the unpaid ACA penalty.

You must be logged in to post a comment.