IRS Will No Longer Reject Returns That Are Silent on Health Insurance Issues
The IRS has announced that it will revert to its prior practice and not reject 2016 individual income tax returns that fail to either check the “full year coverage” box on Form 1040 or provide information related to why the shared responsibility penalty will not apply to them. The IRS explanation of this can be found on their website in the article titled “Individual Shared Responsibility Provision.” (version updated February 15, 2017)
The IRS had announced last year that, beginning with 2016 individual returns, the agency would reject tax returns during processing where the taxpayer failed to provide the required health care information. In prior years the IRS had not rejected the returns (referred to as “silent returns” because they are silent with regard to health insurance issues), but continued to process the return and then, if necessary, contact the taxpayers.
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