The IRS says that it has no problem attaching Tax refunds for those who refuse to purchase health insurance.
A new argument has arisen about the individual mandate after the passage of Obamacare. Some have insisted that the mandate penalty provision got rewritten quietly before passage to keep the IRS from penalizing taxpayers — or more accurately, to keep the IRS from prosecuting taxpayers who refuse to pay the penalties they levy for not having acceptable medical insurance. IRS Commissioner Doug Shulman says there’s more than one way to defur the feline:
Individuals who don’t purchase health insurance may lose their tax refunds according to IRS Commissioner Doug Shulman. After acknowledging the recently passed health-care bill limits the agency’s options for enforcing the individual mandate, Shulman told reporters that the most likely way to penalize individuals that don’t comply is by reducing or confiscating their tax refunds.
Speaking at the National Press Club on Monday, Shulman downplayed the IRS’s role in enforcing the recent overhaul of the health insurance industry by claiming the agency would not aggressively target individuals who don’t purchase coverage. He noted that the health-care bill expressly forbids the agency from freezing bank accounts, seizing assets or pursuing criminal charges, but when pressed said the IRS would most likely use tax refund offsets to penalize those that don’t comply with the mandate. The IRS uses refund offsets to collect from individuals that owe the federal government a delinquent debt.