He (IRS Commissioner Doug Shulman) said insurers eventually will be required to file a document similar to Form 1099 used by financial institutions to report investment income. The agency will send letters to the uninsured notifying them fines could be deducted from their tax refunds for refusing to comply with the new law, Shulman said.
“These are not the kinds of things we send agents out about,” Shulman said. “These are things where you get a letter from us.”
The agency hasn’t determined what resources it will need to enforce compliance with the new law, which contains “nothing too punitive,” he said. The health-care overhaul doesn’t have criminal sanctions for non-compliance.
Beginning in 2015, Americans who don’t purchase insurance will be subject to a fine of $325, increasing to $695 in 2016. The law doesn’t authorize the IRS to go after bank accounts or seize assets, as it can in cases of delinquent tax debt.(more…)
Land of the free, home of the ignorant.
