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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121177  
Subject: Re: Couple Obamacare Thought Bombs Date: 1/28/2014 12:57 PM
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Second, the IRS' enforcement mechanism for collecting the penalty, currently, is limited to deducting the penalty from such refund as might exist, and this is touted as an excellent reason for the taxpayer blowing off the penalty. But in most cases, the IRS is allowed to look back a number of years in order to collect unpaid taxes along with interest and penalties. Is that the case here?

I haven't seen how this is going to be processed, but going from the "It's a tax" reasoning in the SCOTUS decision, I'll assume it will be treated as a tax. That means the IRS has 10 years from the date of assessment to collect it.

Can the IRS look back under Obamacare and collect the Obamacare penalties as back taxes should a (larger) refund show up, or should the IRS be given a sterner penalty enforcement mechanism?

In order, yes and yes. I assume this mess is a result of no one wanting to call it a tax back when they were writing the law.

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