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IRS Won’t Reject Returns If Health Coverage Information Missing

Posted by on February 21st, 2017

Earlier this year, the IRS made changes to its system that would automatically reject tax returns that failed to provide information on health coverage. However, on 1/20/17, President Trump issued an executive order that directed federal agencies to waive, defer, grant exemptions from, or delay implementation of Affordable Care Act (ACA) provisions that impose a fee, tax, penalty, or regulatory burden. In reaction to this order, the IRS has announced that it will continue to allow electronic and paper returns to be accepted for processing in instances where taxpayers don’t indicate their health coverage status. However, the IRS reminds taxpayers that the legislative provisions of the ACA are still in force, and taxpayers are still obligated to follow the law and pay any amounts owed. The IRS’s announcement is available at www.irs.gov/affordable-care-act/individuals-and-families/individual-shared-responsibility-provision .

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