The IRS said it will decline any tax returns submitted online if the filer does not fill out the forms about whether you have health insurance, per NYT. You could be denied your refund without this information.
Why it matters: The tax penalty for lack of health insurance has been controversial and this is the first time the IRS will enforce this rule. Also, it's a small sign that Trump's administration is keeping some parts of the Affordable Care Act alive, despite Trump's repeated claims that it's dead. Think back: Trump's very first Executive Order suggested his admin could halt the tax penalty for insurance. And he has flip-flopped on health care numerous times this month alone. He rolled out another Executive Order earlier this month advocating for the sale of skinnier health plans to small businesses and individuals — on the same day that he announced he'd end subsidies for low-income people. And he changed his mind on the bipartisan proposal to provide "short-term stability to insurance marketplaces under the law," NYT notes. Why now: The IRS wanted to assess the effects of Trump's EOs before rejecting returns without insurance information. Families can face up to $2,085 penalty and individuals could pay as much as $695 each year for the tax penalty without providing insurance information.
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By David Sherfinski, The Washington Times
The IRS doled out more than $24 billion in potentially bogus refunds claimed under several controversial tax credits in 2016, according to a new audit that said $118 million was even paid to people who weren’t authorized to work in the U.S. in the first place. Some $16.8 billion in payments were made on improper claims under the Earned Income Tax Credit, signifying a 24 percent error rate. Investigators also estimated $7.2 billion in improper payments for the Additional Child Tax Credit, representing 25 percent of the total, and $1.1 billion in improper payments, or 24 percent, for a higher education tax credit. read more... If you have seriously delinquent tax debt, IRC § 7345 authorizes the IRS to certify that debt to the State Department for action. The State Department generally will not issue a passport to you after receiving certification from the IRS.
Upon receiving certification, the State Department shall deny your passport application and/or may revoke your current passport. If your passport application is denied or your passport revoked and you are overseas, the State Department may issue you a limited validity passport good only for direct return to the United States.Certification Of Individuals With Seriously Delinquent Tax DebtSeriously delinquent tax debt is an individual's unpaid, legally enforceable federal tax debt totaling more than $50,000* (including interest and penalties) for which a: read more ... Latest TAX NEWS::
IRS Reminds Truckers: For Most, Highway Use Tax Return Is Due Aug. 31 IR-2016-102, Aug. 5, 2016 — The IRS today reminded truckers and other owners of heavy highway vehicles that in most cases their next federal highway use tax return is due Wed., Aug. 31, 2016. www.taxleadersofamerica.com |
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