With the ObamaCare enrollment deadline in the rearview for most, the IRS is preparing for the next step -- tracking and penalizing those who choose not, or cannot afford, to buy approved health insurance.
How aggressive the agency will be in pursuing those fines, though, is an open question. The IRS already is under fire over last year's political targeting scandal and talk of harsh fines on the millions who still do not have insurance is a touchy subject in an election year.
The agency says it is still drafting final tax forms and hiring staff to carry out the task, and is offering some details about how it will collect the penalties.
For most, the penalty will not apply until early next year. Those who failed to purchase insurance by the March 31, 2014, deadline -- and are not exempt, or did not get an extension -- must inform the government on their tax forms in early 2015.
The IRS is using a trust-but-verify approach.
According to the agency, the IRS plans to include a specific line on the 1040 forms for taxpayers to "self-attest" whether they purchased insurance. It will most likely include a worksheet for taxpayers to calculate how much they owe -- essentially either a flat penalty or a percentage of their income.
But the IRS also said it will aim to detect falsely reported information in the same way it does with income reported on the 1040s -- through a third party.Read the rest of the story HERE.
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