IRS Can Reduce Tax Refund for Lack of Health Insurance
The new health reform law does not allow IRS to impose liens or levies to collect penalties from individuals who do not have health insurance, nor does it allow the agency to audit individuals to ensure they have coverage, IRS Deputy Commissioner for Services and Enforcement Steven Miller told the Senate Finance Committee yesterday. However, IRS is not prevented from reducing a tax refund to collect the penalty, Miller said. Committee members Chuck Grassley (R-Iowa) and Pat Roberts (R-Kan.) had questioned whether IRS would be able to enforce the insurance mandate.
- "IRS May Withhold Refunds To Enforce Health Care Law" (Vaughan, Wall Street Journal, 4/15).