LATEST UPDATE: The Republicans have failed to pass a bill that would repeal Obamacare and the Individual Mandate. It appears as though the ACA penalty will remain intact for the foreseeable future.
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 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 the Obamacare fine may 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 It’s important to understand that the law has NOT been repealed!
Adding to the Obamacare penalty confusion is the fact that 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 in effect as tax filing 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.
In essence, this would put an end to the Shared Responsibility Payment.
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 do not recommend that you forego health insurance.
IRS enforcement, at this point, is sketchy. This is despite an apparent lax policy.
You just never know if they will ask you a follow-up question at a later date!
We are hoping to know more about their stance as the next tax filing season approaches.
Keep in mind that the Affordable Care Act, and all of its provisions, is still the law of the land.
The truth is it’s difficult to reverse, repeal or amend such laws as they currently stand.
The Executive Order
There’s been an executive order issued. It indicates the Obamacare fine’s days are numbered.
Yet, the language doesn’t explicitly repeal the ACA penalty part of the law.
Congress is needed.
Coverage w/ No Possible Fine
It’s tough to imagine how Trump will come up with a viable replacement for Obamacare.
He hasn’t and probably won’t!
Without a penalty, many people will simply not sign up for healthcare coverage.
Read this article for more insight.
Tom Price Makes the Price Right?
Trump’s Secretary of Health & Human Services is Mr. Price.
So far he hasn’t been able to achieve a full out repeal of Obamacare in its entirety.