Last year, we didn't have to mark the box or charge the penalty for 2016 tax returns (later in the tax season). This year we do. Can I amend the 2016 returns, the ones I charged the penalty before the executive order came out? Will the client get the penalty amount back? Has anyone done this?
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The penalty is still owed, whether or not you indicated there was insurance or not.
So no, even if you amended to not include the penalty, the penalty still must be paid, and would not be refunded. -
OK, just wondered. Doesn't seem right that early filers got penalized and later filers didn't..Who said life was fair?Comment
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Your historical facts are in error. Up until this filing season, no returns were immediately rejected for failure to indicate MEC (health insurance coverage). This was true of all prior years since the ACA mandate went into effect, not just last year. There was no "executive order" that changed anything. And even if the the return was accepted with the missing info, an IRS letter might still be sent requiring the info be provided.
So no, they won't get any penalty "back", since it is still the law, through the end of 2018. And people who didn't report coverage may yet be assessed the penalty. However, per the original law, IRS has limited means to collect the penalty, basically only offset of refund, no liens or levies."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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OK, Understand. thanksComment
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