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Originally Posted by Azure
Is that possible? I'm not sure how the tax code works down south, but I assume if they can't enforce collecting it while they're alive, why would they collect it when the guy dies?
I mean, if you don't pay your taxes....ever, and you die, does the IRS take their cut?
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This is weird and makes no sense what so ever. I'm no expert on this by any means but am in the US as a tax accountant. I know that when you die you do have to file a tax return and a tax will be assessed based upon your total assets at the time of death. They may try to build any penalties into that return.
I could also see the IRS collecting on this by building it in your annual tax return and when it says you owe a certain amount of money it won't break out the portion that would be a penalty for not having health insurance. If anyone has overpaid on their taxes during the year it would likely reduce the refund paid to the person. I'm not sure if they would be allowed to do that or not.
The other thing they might try doing is sending out the penalty noticed and for people not educated as to how far they can go in collections they may just pay it.
There has to be a loophole in this somewhere because I can't see them being so stupid as to not allow some way to collect on it. I think most accountants down here are in the same boat right now and haven't given this much of a thought considering the filing deadline for taxes is coming up in 3 weeks time. After that I'm sure there will be a greater flow of information.