LATEST UPDATE: People are frantic about filing their 2016 taxes and for good reason. The Obamacare fine remains the law of the land which puts accountants in a very tough position. Due to the IRS’s recent stance, many filers expect to avoid any penalty despite the provision still being on the books. Mass confusion to say the least!
President Donald J. Trump has vowed to repeal and replace the Affordable Care Act. It’s too early to say for certain, but it’s likely the Obamacare fine will eventually be eliminated.
He has already issued an executive order to, “minimize the unwarranted economic and regulatory burdens of the Act” but the language is widely considered to be vague. It’s important to understand that the law has NOT been repealed!
While the Obamacare penalty hasn’t officially been eliminated, the IRS has recently stated they won’t be rejecting returns that withhold personal healthcare coverage status information.
Nevertheless, the ACA’s individual fine provision remains intact as tax season fast approaches!
Unpopular Individual Mandate
Certain parts of Obamacare are actually quite popular with the general public. The Individual Mandate requirement is, however, not one of them.
Trump may keep a few provisions of the Affordable Care Act, while removing the requirement for individuals to maintain health insurance. This would effectively put an end to the “Shared Responsibility Payment” part of the law.
In other words, Trump may successfully get congress to kill the Obamacare fine sometime in 2017. He seems very serious about making it happen.
Penalty Provision is Still Law
We don’t recommend that you forego health insurance. The 2016 Obamacare penalty may still be enforced by the IRS, despite their apparent loosening of reporting requirements.
You never know if they will ask you a follow-up question at a later date! We are hoping to know more concerning their Obamacare fine stance as tax filing season approaches closer in April of 2017.
Keep in mind that the Affordable Care Act, and all of its provisions, is still the law of the land. It takes time and may be difficult to reverse, repeal or amend such laws as they currently stand.
Language in Executive Order
President Trump issued an executive order which indicates that the Obamacare fine’s days are numbered. Yet, the language it contains does not explicitly repeal the ACA penalty part of the law. Congress is needed.
Coverage w/ No Possible Fine
It’s difficult to imagine how exactly President Trump will come up with a viable replacement for Obamacare. Without a penalty, many people will simply not sign up for healthcare coverage.
It’s worth reading this article for more insight.
Tom Price Makes the Price Right?
Trump’s Secretary of Health & Human Services is Mr. Price. He is intent on repealing Obamacare and the Individual Mandate’s penalty.