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health insurance penalty waived by executive order?

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    health insurance penalty waived by executive order?

    Client filed extention for 2016, did not pay estimated tax. Tax due was $835 including penalty of $695 for no health insurance. Recieved a letter from IRS stating that he only owed $148 which includes penalty and interest for late payment. The notice CP14 seems to indicate the total amount due is less the $695 penalty. I seem to remember something about an executive order directing the IRS to not enforce penalties for the healthcare. Anyone aware of this?
    Thanks for responses

    #2
    The IRS enforcement is from the original law passed in 2010. The IRS can't collect on the penalty the same way it can others. The taxpayer still owes the penalty and it can still be offset from refunds and such.

    With the CP14 notice, that manifests as a separate letter for the penalty. CP14H for the penalty.

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      #3
      Thank you David1980

      Originally posted by David1980 View Post
      The IRS enforcement is from the original law passed in 2010. The IRS can't collect on the penalty the same way it can others. The taxpayer still owes the penalty and it can still be offset from refunds and such.

      With the CP14 notice, that manifests as a separate letter for the penalty. CP14H for the penalty.
      Thats what I suspected--an EO of that magnitude would be page 1!

      Thank you, appreciate it!

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