Refund of 2016 Penalty
If you paid a penalty for not having health insurance in 2016, we might be able to get that refunded to you!
Here at Aapril Tax Service Inc we are constantly monitoring the tax law and court decisions to make sure we don’t miss any new rulings that could help our clients. Recently the United States 5th Circuit Court of Appeals ruled on the legality of the clause in the Affordable Care Act. The clause is one that mandated individuals have health insurance coverage of a certain standard and imposed an Individual Shared Responsibility Payment on taxpayers who did not meet this requirement. The ruling did not void the entire Affordable Care Act; however, it did make the Individual Mandate unconstitutional.
The government has appealed this case to the United State Supreme Court, but we expect no movement on that until a later date. In the appeals trial the government acquiesced to the removal of the Individual Mandate, but with stipulations. So, at this time we do not know for certain which years the court will backdate the relief from this payment.
A refund of money paid to the IRS can only be made within three years of the due date of the return or two years of the time the money was paid to the IRS. That would normally have meant that the claim for refund of payments made with the 2016 tax return would have expired on 4/15/2020, but, with the advent of the COVID‐19 pandemic, Congress has extended deadlines to 7/15/2020 and that includes the time to file this claim.
We have identified your 2016 tax return as one that this ruling will impact, and we would like to offer to assist you in protecting your claim for a refund of those funds. We are offering to complete and file the necessary paperwork to get your protective claim in place. This would mean a tentative refund to you of the amount on Line 61 of your 2016 Form 1040.
We cannot guarantee that the claim will be approved, nor can we give you a time frame on the refund if it is approved. What we can guarantee is that is this claim is not filed and postmarked by 7/15/2020 it will be lost regardless of the final decision at the US Supreme Court.
Our fee for this will be minimal, $150, to cover our time and the administrative costs as well as sending the package certified mail with tracking so that we can document the arrival before the deadline. In order to meet the demand for this service and make sure we can get it completed before the deadline we are asking that you respond no later than 6/22/2020 as our goal is to have all of these claims out in the mail by 7/3/2020.
If you are interested in this value‐added service, we are offering please respond as soon as possible and we will send you the hire documents and payment options.
Julie Wrobel-Eckard EA