The IRS has announced it will no longer accept electronically filed returns where the taxpayer does not address the reporting requirements of the Affordable Care Act (“Obamacare”).  In addition returns filed on paper that don’t address the reporting requirements may be suspended pending receipt of additional information and any refunds may be delayed.

This marks the first time the IRS is holding firm.  In previous tax seasons it held up processing returns that did not have the health care coverage box checked yet didn’t prevent the returns from being processed.  This was due to President Trump’s executive order directing agencies not to impose burdens from the ACA given repeal of the law was pending.

Despite the prior flexibility the IRS still imposed on taxpayers the individual shared responsibility penalty if they lacked coverage and did not receive an exemption.  Doing so reflects the ACA’s requirements and the IRS’ obligation to administer the law.