False Information About IRS Liens On Homes-from our MIBOR.

It doesn't matter if your support or despise ObamaCare, this article shows the ACA effects on Real Estate.  

This is from our board of Realtors...MIBOR...False Information About IRS Liens On Homes

"Recently, there has been a new Affordable Care Act (ACA)-related item that is making the rounds on Facebook/email forwards about which you may receive questions. The posting being circulated claims that the IRS can attach a lien to a home if the owner fails to comply with the health reform individual mandate. The posting is wrong. The IRS cannot attach a lien. 

Q. I am seeing rumors on Facebook that if people opt out of buying health insurance and don't pay the penalty for not having it, the Internal Revenue Service will be able to put a lien on their home. Is it true? Could they end up facing this type of penalty?

A. It's not true. Starting next year, most people will have to have health insurance or face a penalty of $95 or 1 percent of family income, whichever is greater. The penalty increases gradually to $695 or 2.5 percent of income in 2016.

The penalty will be treated like income tax due, says Mark Luscombe, principal federal tax analyst at CCH, a tax and business information publisher. 

Normally the IRS can garnish wages and file liens and levies to collect unpaid income taxes, but the health care law specifically prohibits those activities if people don’t pay the penalty for not having insurance, says Luscombe.

So if someone doesn't pay the penalty, "all the IRS can do is offset the refund," he says."

What this article shows, but to me slides over...$95 or 1% of family income...to me that means, if your family brings in $60k...would that be $600??? Let's say you are at the same income in 2016...is that not going to cost you $1500? So, the term gradually...that is 150% if I did my math right. Now, maybe this has another asterisk as maybe there is a cap...the ACA is 1,000's of pages of which most politicians didn't even read before they passed it...of course we all know you should pass it before you understand it. Now, to correlate that with our world. What if Realtors(R) told our clients you should buy the house, then inspect it...doesn't make sense does it?  Well, thought this was worth posting today. Thanks to MIBOR for the content to write about.


Lisa Jones said...

With scam artists hard at work all year, taxpayers should watch for new versions of tax-related scams. One such scam involves fake property liens. It threatens taxpayers with a tax bill from a fictional government agency. IRS debt forgiveness

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