The IRS can’t freeze your bank account or seize your assets if you haven’t
been forced willing purchased health insurance. What they can do, what IRS Commissioner Doug Shulman says they will be doing, is holding tax refund checks.
He told reporters yesterday, in the wake of reports saying the health insurance mandate is rather innocuous, that enforcement is coming. The IRS always gets it’s
Shulman said the IRS would not
handcuff and lock up aggressively target anyone without health insurance coverage. How silly. Instead, the IRS would continue holding money they had been holding all year that isn’t rightfully theirs to hold until the owner of said held money purchases health insurance or pays a fine, which is how the IRS plans to keep collect some of that held money the mandate.
“These are not the kinds of things we send agents out about,” Shulman said.
That’s for businesses that owe four cents.
“These are things where you get a letter from us. Congress was very careful to make sure there was nothing too punitive in this bill.”
Nothing too punitive, meaning pay the mandate or face an escalating fine, a reported $325 in 2015 that more than doubles by the following year.
“The vast majority of American people have a healthy respect for the law and want to be compliant with their tax obligations,” Shulman said, mentioning letters, collection notices and offsets as among the various ways the IRS will reach out to people without coverage.
That’s why the entire nation goes into a parade and heady celebratory mood on April 15.
Schulman, who has gone under fire and criticism for not preparing his own taxes, is confident taxpayers will pay up, either the fine or the mandated health insurance purchase, in order to avoid the IRS holding tax refunds.