Opting Out Of The Obamacare Tax: What Happens If You Don't Pay? Pretty Much Nothing

Forbes reports on what happens if you don't have health insurance under ObamaCare:

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.

Just a reminder.