Is IRS still collecting past penalties (2016-2018) for not having health insurance?

[origun]

I had a client who had penalties for no health care in 2016-2018. He had a balance due each year and deducted the penalty amounts from what he sent in. He always has a balance due but this year he had a refund because of a solar credit and had quite a bit deducted from his refund...not a happy camper! Is there a specific IRS policy for these collections? It looks like they only deducted 2018 am't plus interest. Will IRS be sending a letter explaining calculations?

[New York Enrolled Agent]

I had a client who had penalties for no health care in 2016-2018. He had a balance due each year and deducted the penalty amounts from what he sent in. He always has a balance due but this year he had a refund because of a solar credit and had quite a bit deducted from his refund...not a happy camper! Is there a specific IRS policy for these collections? It looks like they only deducted 2018 am't plus interest. Will IRS be sending a letter explaining calculations?

See IRC section 5000A(g)

[origun]

I understand that they can collect penalties from refunds as indicated in section 5000A(g) and told client that at the time he opted not to pay but he assumed he would never have a refund and would get away with it! I am wondering what the IRS procedure is for collection so I can advise my client what to prepare for. It seems like they only collected the 2018 penalty with interest although there was a large enough refund to collect all 3 years' penalties. Can client assume that next year with a credit carryover and therefore another refund, they will deduct another year's penalty? I have advised him as to his obligations but he is resistant to pay all his penalties and as each year passes, interest accumulates. Has anyone had any experience with this?