We all know that there will be penalties for those Americans who violate the Affordable Care Act’s requirement that everyone must get health insurance. But, according to a new report, the IRS will have a difficult time collecting those penalties because Congress has banned them from using their usual techniques. The IRS will be allowed to deduct penalties from tax refunds owed to individuals, but the agency will not have the ability to apply liens on property or automatically deduct from wages or bank accounts. Instead, they might send letters warning individuals that they must buy coverage.
This lack of IRS enforcement may deprive hospitals of revenue if too many Americans choose to ignore the mandate. Agency officials say that they are already under massive stress; the individual mandate is “one of 46 different areas of ACA enforcement that falls under the IRS.”
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