IRS building. How the IRS enforces Obamacare

How the IRS enforces Obamacare

IRS Enforces ObamaCare

The IRS enforces ObamaCare  by issuing rules. These rules become final once they are officially signed off by IRS and Treasury Department officials. The IRS has in fact issued the final rules that detail how it will enforce ObamaCare. Specifically, you will find information below for how the IRS will enforce the individual mandate.

Individual Mandate

Section 5000A of the Internal Revenue Code states that an applicable individual shall for each month beginning after 2013 ensure that the individual, and any dependent of the individual who is an applicable individual, is covered under minimum essential coverage for such month. If a taxpayer who is an applicable individual, or an applicable individual for whom the tax- payer is liable under paragraph (3), fails to meet the requirement of subsection (a) for 1 or more months, then, except as provided in sub- section (e), there is hereby imposed on the tax- payer a penalty with respect to such failures.

If an individual with respect to whom a penalty is imposed by this section for any month—(A) is a dependent (as defined in section 152) of another taxpayer for the other taxpayer’s taxable year including such month, such other taxpayer shall be liable for such penalty, or (B) files a joint return for the taxable year including such month, such individual and the spouse of such individual shall be jointly liable for such penalty.  The amount of the penalty imposed by this section on any taxpayer for any taxable year with respect to failures described in sub- section (b)(1) shall be equal to the lesser of—(A) the sum of the monthly penalty amounts determined under paragraph (2) for months in the taxable year during which 1 or more such failures occurred, or(B) an amount equal to the national average premium for qualified health plans which have a bronze level of coverage, provide coverage for the applicable family size involved, and are offered through Exchanges for plan years beginning in the calendar year with or within which the taxable year ends.

For purposes of paragraph (1)(A), the monthly penalty amount with respect to any taxpayer for any month during which any failure described in subsection (b)(1) occurred is an amount equal to 1⁄12 of the greater of the following amounts: an amount equal to the following percent- age of the excess of the taxpayer’s household income for the taxable year over the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer for the taxable year:

(i) 1.0 percent for taxable years beginning in 2014.

(ii) 2.0 percent for taxable years beginning in 2015.

(iii) 2.5 percent for taxable years beginning after 2015.

Except as provided in subparagraphs (B) and (C), the applicable dollar amount is $695. The applicable dollar amount is $95 for 2014 and $325 for 2015. In the case of any calendar year beginning after 2016, the applicable dollar amount shall be equal to $695, increased by an amount equal to—(i) $695, multiplied by(ii) the cost-of-living adjustment deter- mined under section 1(f)(3) for the calendar year, determined by substituting ‘‘calendar year 2015’’ for ‘‘calendar year 1992’’ in subparagraph (B) thereof.

In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.

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