KHN Morning Briefing

Summaries of health policy coverage from major news organizations

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IRS Alerts Consumers To Insurance Penalty Tax Scam

Tax preparers are keeping the money from the fines their clients are paying for being uninsured, as mandated by the Affordable Care Act. The agency said the creators of these schemes have been “targeting taxpayers with limited English proficiency and, in particular, those who primarily speak Spanish.”

The New York Times: Tax Scams Are Targeting Uninsured, I.R.S. Warns
The Internal Revenue Service is warning consumers about tax scams involving the Affordable Care Act and penalties imposed under the law on people who go without health insurance. In some cases, the agency said, unscrupulous tax preparers tell clients to pay the penalties directly to them, and they keep the money. Most people do not owe the payment at all. “However,” the I.R.S. said, “if you owe a payment, remember that it should be made only with your tax return or in response to a letter from the I.R.S. The payment should never be made directly to an individual or return preparer.” (Pear, 1/31)

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