Thursday, April 15, 2010

IRS May Withhold Tax Refunds To Enforce Health Insurance Mandate - FOXBusiness.com

IRS May Withhold Tax Refunds To Enforce Health Insurance Mandate - FOXBusiness.com: "WASHINGTON -(Dow Jones)- The Internal Revenue Service won't audit you to make sure you have purchased health insurance under provisions of the new health-care law--but it may withhold your tax refund if you can't demonstrate that you are insured, an IRS official said Thursday.

Steven T. Miller, IRS Deputy Commissioner for Services and Enforcement, made the comments during a hearing of the Senate Finance Committee. He echoed earlier comments by IRS Commissioner Doug Shulman that questions about health coverage won't in and of themselves lead to an IRS audit.

'There are tools we can use. We obviously will be notifying folks [for whom there is no record of health insurance] that we have these questions,' said Miller. 'We have a refund offset mechanism in order to enforce that provision.'

Republicans on the Finance Committee including Sens. Charles Grassley of Iowa and Pat Roberts of Kansas, questioned whether the IRS will even have the ability to make sure the insurance mandate is enforced."

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