Opting Out Of The Obamacare Tax: What Happens If You Don't Pay?

Kelly Phillips, Erb

Last month, the Obama administration announced that between three and six million households – about 2 to 4 % of taxpayers – would be faced with a penalty (or is it a tax?) at tax time for failing to secure “minimum essential coverage” to comply with the Affordable Care Act (ACA), sometimes referred to as Obamacare.

Under Obamacare, you’re considered covered if you have insurance through the government, including Medicare, Medicaid, CHIP, retiree coverage, TRICARE, or VA health coverage; private insurance that you purchased on your own including COBRA coverage and coverage obtained through the Health Insurance Marketplace; or provided by your employer (even if you didn’t pay anything for the coverage). You’ll report coverage on your tax return (find out how here). Most taxpayers – about 130 million or so – will report coverage.

Of those that don’t have coverage (estimates range from 20 million to 37.5 million), most will avoid being subject to the penalty based on a waiver or exemption. Exemptions exist based on income or filing status, immigration status and religious affiliation – as well as the much-talked about incarceration exemption. A number of hardship exemptions are also available. (For more on exemptions and waivers, click here.)

Those taxpayers who can’t demonstrate essential minimum coverage and aren’t otherwise exempt are subject to a penalty – the shared individual responsibility payment – equal to 1% of income above the “filing threshold” or $95 per adult and $47.50 per child (up to $285 for a family), whichever is higher. That amount is figured and reported on the taxpayer’s 2014 tax return, payable by April 15, 2015.

For the 2015 tax year, the amount of the penalty increases to 2% of income or $325 per adult; in 2016, it jumps up again to 2.5% of income or $695 per person.

In terms of dollars, the CBO had initially estimated that by 2016, nearly six million taxpayers would be subject to an average penalty of $1,200. The overwhelmingly majority (80%) of those estimated to be at risk to the penalty were those in the middle class with incomes between $55,850 and $115,250.

Since that time, the numbers have been adjusted downward, based largely on the perceived success of policies purchased through the Marketplace and the increased number of taxpayers exempt under the rules. Those estimates – between three and six million households – are still just guesses. But the dollars associated with those numbers are the real mystery. You see, buried in the language of the 2010 law creating the Affordable Health Care Act (you remember, the “big f*cking deal”) is a bit of an out: There are practically no real consequences for not paying the penalty.

I mentioned this to Maggie McGrath, personal finance reporter for Forbes, while shooting video about the Health Care Act earlier this month. “Shouldn’t that be the real story?” she asked.

She’s right, of course. It should but oddly enough, nobody is really talking about it.

Why so quiet? Here’s my guess: nobody has a clue what’s really going to happen. You see, when the Act became news in 2010, rumors were flying about what would happen if you didn’t pay the penalty. It was politically tricky. The consequences needed to be enough to make you want to conform with the Act but not so onerous that Congress would be loathe to vote for it.

The final language in the Act declared that the penalty “shall be paid upon notice and demand” which sounds really intimidating. The language went on to note that the penalty would be “collected in the same manner as an assessable penalty under subchapter B of chapter 68″ which also sounds pretty serious – especially since subchapter B references some pretty nasty penalties for otherwise not complying with other sections of the Tax Code.

So what would the penalty for noncompliance be? Jail time? Nope. The language in the Act specifically rules out jail time, saying at Section 500A(g)(2)(A):

In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.

So, no jail time.

But that means that the IRS will chase you and lien your property if you don’t pay, right?

Nope. That’s not allowed under the Act.

At 500A(g)(2)(B)(i), the Treasury cannot “file notice of lien with respect to any property of a taxpayer by reason of any failure to pay the penalty imposed by this section.”

So, no liens.

Then, clearly there will be levies or seizures on your wages and account, right?

Nope. Not that either. Under 500A(g)(2)(B)(ii), the Treasury cannot “levy on any such property with respect to such failure.”

To recap then, by law, you have to pay the penalty. But if you don’t, you won’t go to jail, you won’t be liened and you won’t be levied for collection.

Is there anything that could happen to you if you choose not to pay? With no jail, no liens and no levies, it doesn’t leave the IRS a lot of room to work when it comes to collections. Congress actually managed to create, as I wrote in 2012 and in in 2013, an incredibly complex and burdensome law without any teeth.

Well, maybe some teeth. Baby teeth. The IRS might seize any part or all of your refund in order to satisfy your obligation. Might. IRS hasn’t come right out and said that it absolutely will offset your refund if you owe a penalty for failure to pay. However, in the Final Regulations issued on this matter, IRS noted that “[n]othing in this section prohibits the Secretary from offsetting any liability for the shared responsibility payment against any overpayment due the taxpayer, in accordance with section 6402(a) and its corresponding regulations.” That’s sufficiently passive aggressive, right? You’re on notice that the IRS doesn’t think that it’s barred from taking your refund. They’re not saying they will (for certain) but they’re not saying they won’t either.

So is there anything you can expect for sure? You can definitely expect a lot of letter writing and virtual shaking of the government’s fist at you. Maybe even some blustering, for good measure.

But real consequences? Other than that potential refund seizure and a guilty conscience, there’s nothing to keep taxpayers from opting out of paying. Will they? We’ll have to wait and see.

Want more taxgirl goodness? Pick your poison: follow me on twitter, hang out onFacebook and Google, play on Pinterest or check out my YouTube channel. For cases and tax related docs, visit Scribd.

Exercise Your Way to a Healthy Pineal Gland
She has a nice voice. She's articulate and her explanation is pretty good. And though I am not comfortable with her world view, she does lead you through a helpful exercise. 

Classification is a hardening. You don't want your pineal gland to harden. It should be malleable as she points out. Dreams in color is a sign of a healthy pineal gland.

Treatment Recommendations

• Eliminate and discard all non-stick cookware
• Eliminate Soy - Soy suppresses thyroid functions, imbalances hormones, and it has been shown to cause goiters (an enlargement of the thyroid gland) in previously healthy individuals, which shows that it disrupts iodine usage.
• Adhere to an Alkaline Diet - This is extremely helpful when curing any chronic disease. Reference the Body pH and Disease article to guide you.
• Balance Estrogen Levels (Women) - Excess estrogen slows down the thyroid gland. This means eliminating birth control medications, increasing the fiber in the diet, and avoiding all non-organic meats. Growth hormones in meats lead to imbalanced hormones. Reduce dairy intake, because milk often contains lots of estrogen.
• Exercise - Find a physical activity that is fun, and do it often. We believe that exercise could half the cure time in some cases, and curing is not possible without it.
• Hemp Fiber - This is a broad-spectrum supplement and a mild laxative.
• L-Tyrosine - Tyrosine is a natural amino acid which helps the body produce its own thyroid hormone. This is also known to help with the depressions that usually accompany hypothyroidism. Most naturopaths recommend that 500 mg. be taken 2-3 times daily.
• L-Arginine - Arginine is known to stimulate the thyroid and its hormones. It also improves immune function, improves fertility, and alleviates erectile dysfunction.
• Iodine - The thyroid needs iodine to function properly, and lots of people now suffer from iodine deficiencies. To test yourself, place some iodine (we use 2%) on your stomach. Make a dot the size of a silver dollar (or twice the size of a British 50p). If it disappears within 12 hours, then you are iodine deficient. Keep adding iodine in increasing amounts, until it no longer disappears in a 12-hour period. This works due to the fact that the body transdermally absorbs iodine at the rate at which it is needed. Do not use povidone iodine and do not orally consume iodine. This is especially an important precaution for those with Hashimoto's thyroiditis. Check the link for other options and considerations concerning safe iodine supplementation. Red marine algae is the only means to safely orally supplement with iodine, but beware of other types of underwater vegetation. Baked fish is the safest and most natural way to consume iodine, but beware of bottom feeders, shell fish, krill, and etc. Think kosher in regard to the choice of fish.
• Avoid all sources of fluoride - As already mentioned, fluoride suppresses the thyroid, and is likely to be the leading cause of hypothyroidism. Drink spring water, avoid soft drinks, use fluoride-free toothpaste, use a shower filter, and throw away non-stick cookware. Both coffee and tea naturally contain fluoride, so use iodine to compensate if these drinks are indispensable.
• Eat a natural diet - To help the body to heal itself, remove burdens on its immune system. This means that all processed foods, artificial flavors, colors, preservatives, white flour, white sugar, table salt, hydrogenated oils, aluminum, high fructose corn syrup, and etcetera should be eliminated from the diet. Organic food is the ideal. Do not trust marketing that reads "All Natural", because this phrase is intentionally unregulated, so that anyone may use it for anything. Read labels carefully.
• Chlorophyll - Supplementing with chlorophyll provides essential copper, helps oxygenate the body, builds healthy red blood cells, and it overall assists with skin health. Chlorophyll is a safe method of orally supplementing with copper. Those who are using our Colloidal Copper Lotion are unlikely to need more copper.
• Pears and Apples - The ancient Chinese discovered that pears have a powerful tendency to balance hormones; especially in women. Pears help most when mixed with or juiced with apples. Try our pear juice recipe, and drink it regularly.
• Zinc and Selenium: Studies indicate that severe zinc or selenium deficiencies can cause decreased thyroid hormone levels. Never take zinc on an empty stomach. Brazil nuts are high in both zinc and selenium.
• Coconut Oil: Buy organic, cold-pressed, coconut oil from a health food store. Take around 1 teaspoon of it daily. You can also use it to cook with, but be warned that it smokes at low cooking temperatures, so it should only be used for low-heat cooking. Coconut oil speeds the metabolism, encourages production of the thyroid hormone, and kills candida yeast.
• Avoid Canola Oil: Canola oil interferes with the production of thyroid hormones, amongst its many other dangers. Treat canola oil like the abominable, genetically engineered, poison that it is.

CHEMICAL COMPANIES MARKET TO DOCTORS

The website mentioned in the segment is OpenPaymentsData.

Eat Butter for Stronger Teeth
from C. Thomas Corriher

You can safely bleach your own teeth using a natural substance: oxygen. Simply rinse and gargle with oxygenated water, more commonly known as hydrogen peroxide, every time that you brush your teeth. In a matter of weeks, a tremendous change will be seen in the color of the teeth. The oxygen from hydrogen peroxide will safely bleach teeth white. If caught early enough, gargling with hydrogen peroxide can sometimes wipe-out a sore throat infection. Unlike fluoridated toothpastes, it can even be swallowed without the necessity of a visit to a hospital. Ingestion of low doses is actually good for the body. The main side effect is a reduced cancer risk. The ideal peroxide is 3% strength or weaker of food grade hydrogen peroxide. Normal hydrogen peroxide contains chemical stabilizers and other additives, which may get absorbed into the body.

For the best teeth, real butter should be added to the diet. Butter can actually eliminate small cavities, and it provides fat-soluble vitamins that are hard to find elsewhere. Toothpastes that contain monocalcium phosphate are ideal, because they can help to remineralize damaged teeth. Avoid any toothpaste that contains sodium lauryl sulphate or sodium laureth sulphate. These industrial degreasers are terrible for the health. Fluoride should always be avoided too, and it is specifically known to darken teeth.

Reprinted from The Health Wyze Report.

20 Benefits of Raw Butter

1.   Butter is rich in the most easily absorbable form of Vitamin A necessary for thyroid and adrenal health.

    2.   Contains lauric acid, important in treating fungal infections and candida.

    3.   Contains lecithin, essential for cholesterol metabolism.

    4.   Contains anti-oxidants that protect against free radical damage.

    5.   Has anti-oxidants that protect against weakening arteries.

    6.   Is a great source of Vitamins E and K.

    7.   Is a very rich source of the vital mineral selenium.

    8.   Saturated fats in butter have strong anti-tumor and anti-cancer properties.

    9.   Butter contains conjugated linoleic acid, which is a potent anti-cancer agent, muscle builder, and immunity booster

    10.                Vitamin D found in butter is essential to absorption of calcium.

    11.                Protects against tooth decay.

    12.                Is your only source of an anti-stiffness factor, which protects against calcification of the joints.

    13.                Anti-stiffness factor in butter also prevents hardening of the arteries, cataracts, and calcification of the pineal gland.

    14.                Is a source of Activator X, which helps your body absorb minerals.

    15.                Is a source of iodine in highly absorbable form.

    16.                May promote fertility in women.

    17.                Is a source of quick energy, and is not stored in our bodies adipose tissue.

    18.                Cholesterol found in butterfat is essential to children’s brain and nervous system development.

    19.                Contains Arachidonic Acid (AA) which plays a role in brain function and is a vital component of cell membranes.

    20.                Protects against gastrointestinal infections in the very young or the elderly.

Vitamin C Regenerates and Detoxifies Your Hormones

This is excellent news.  One thing I like about health and nutrition news these days is that findings are becoming more and more specific. Hormone health is vitally important to a sense of well-being and vigor. So reading how Vitamin C regenerates your hormones is particularly good news.  It's not just good for fighting colds, so consume more of it during your week. 

Sometimes called the 'sunshine vitamin' because it is found in high levels in citrus fruits, vitamin C has a uniquely regenerative role in hormone health and cancer prevention that has been overlooked for over twenty years!

Here is the science:

Published in 1993 in the journal Radiation Physics and Chemistry and titled, "Photo-induced regeneration of hormones by electron transfer processes: Potential biological and medical consequences," Austrian researchers explored the role that vitamin C plays in preventing the degradation of steroid hormones into toxic and cancer-promoting metabolites known as "hormone transients."  Their stated goal was "to investigate if hormone transients resulting by e.g. electron emission can be regenerated."

The molecular structure of progesterone, estrone (a form of estrogen) and testosterone is such that when exposed to differing biological and/or environmental conditions, e.g. UV light, pH, temperature, they lose electrons, becoming toxic and often carcinogenic metabolites that represent a burden on the body's eliminative capabilities. Vitamin C is a well-known electron donor, which is to say a substance that donates electrons to another compound (i.e. a 'reducing agent'). Vitamin C's ability to donate electrons can have an antioxidant effect as far as neutralizing free radicals, or as is the case with transient hormone metabolites, a structurally regenerative one.

Remarkably, vitamin C was capable of almost complete regeneration of estrone and quite significant regeneration of both progesterone (52.7%) and testosterone (58.6%). 

These experimental results have profound implications if they prove to carry over to human physiology. For instance, vitamin C may offer an alternative (or at least adjuvant and/or 'drug sparing' effect) to hormone replacement therapy, which suffers from the problem of 'feeding the deficiency,' i.e. negative feedback loops operative within our endocrine system can result in the down-regulation of endogenous steroid hormone production when exogenous forms are supplied.

Vitamin C, of course, is exceptionally safe at high doses and has hundreds of proven health benefits (view our Vitamin C health benefit database), whereas conventional chemopreventive agents for cancer, e.g. Tamoxifen, and hormone replacement therapy using animal derived and/or synthetic hormone analogs, cause a wide range of adverse health effects, including at times increased mortality.  

For additional related research you can read two previous on vitamin C's role in cancer treatment in intravenous form and vitamin C rich foods like pomegranate as an alternative to hormone replacement therapy.

Sayer Ji is the founder of GreenMedInfo.com, an author, educator, Steering Committee Member of the Global GMO Free Coalition (GGFC), and an advisory board member of the National Health Federation.