1. According to the IRS, It Will Not Be “Heavy Handed” in Assessing the Tax Penalties Under ObamaCare For Those Individuals Failing To Meet the Mandate To Have Health Insurance – According to a recent announcement by the IRS, the normal rules of tax collection specified in the Internal Revenue Code (which can be somewhat punitive in nature) will not apply to individual taxpayers who fail to comply with the individual shared responsibility requirements under ObamaCare. These requirements first become applicable in 2014 and can result in fines beginning in 2015 (if a taxpayer is not covered by a minimum amount of health insurance for the preceding calendar year). In remarks to the Financial Services and General Government Subcommittee, the acting IRS Commissioner stated that “the collection rules are different and a lighter touch is required of the IRS with respect to the individual mandate under ObamaCare.”
3. IRS Apologizes To Tea Party Groups For Inappropriate Scrutiny Of Their Applications For Tax-Exempt Status – On May 10, 2013, Lois Lerner, IRS Director of Exempt Organizations, made prepared remarks to the American Bar Association Tax Section meeting in Washington, D.C. that have resulted in one of the more memorable scandals to rock the IRS in a long time.
She began her remarks by publicly apologizing to Tea Party groups for the treatment they have received from the IRS when applying to the IRS for tax exempt status under IRC Section 501(c)(4) as a "social welfare" organization. According to Ms. Lerner, certain unnamed career employees of the IRS's exempt organizations branch singled out groups applying for tax exemption with the name "Tea Party" and "Patriot" for extra review and scrutiny.
Ms. Lerner admitted to the Tax Section that the IRS's actions were "absolutely wrong and inappropriate." She also admitted that the extra review resulted in the IRS asking questions of the organizations that were too broad, including questions about their contributors that were not customary and that the reviews thus undertaken took too long to conclude.
The following is a brief summary of recent developments in this area:
Wednesday, April 24, 2019 | 7:30 AM – 9:30 AM EDT | The Hartford Club