The IRS has quietly announced that it will not reject income tax returns of individuals who do not disclose if they have health insurance. Beginning with the 2015 income tax returns, individuals were required to check a box on the line labeled- Health care, individual responsibility – to indicate full year health coverage or not (line 61 of IRS Form 1040 and line 11 of IRS Form 1040-EZ). The IRS has said that it will not reject income tax returns that do not have an answer in this box.
The change in the IRS’ position results from an executive order released by President Trump authorizing agencies to lessen the financial burden of complying with the Affordable Care Act. It is not clear if the penalties associated with not maintaining health coverage will also be repealed.
