The Internal Revenue Service (IRS) has signaled a change in how it monitors compliance with the Affordable Care Act’s (ACA) individual mandate. Under this change, tax returns will no longer be automatically rejected if they do not certify whether the individual had health insurance for the year.
The new IRS policy on accepting “silent returns” is based on President Donald Trump’s executive order directing federal agencies to provide relief from the burdens of the ACA.
This change is not reflected in official IRS guidance, but it suggests that the IRS may be pulling back on enforcement of the individual mandate. This may make it easier for individuals to avoid penalties for not having health insurance.
ACTION STEPS
The IRS’ policy change does not eliminate the ACA’s individual mandate penalty. Individuals must continue to comply with the ACA’s requirements, including paying any penalties that may be owed. Taxpayers who fail to provide health coverage information may still receive follow-up questions and correspondence from the IRS.
