So what happens if you don’t pay Obamacare’s tax penalty?
By Sarah Kliff,
“We don’t know yet whether there will be a special additional form nor how the IRS will treat a return that comes in with missing information, she says. “Sometimes if something is missing the IRS can work without it. Sometimes the IRS will correspond and say, ‘We’re going to assume X is true unless you respond with different information.’ There’s a set of compliance procedures the IRS will need to develop to complement the approach to the form.”
So the tax penalties accumulate, and the interest goes up and up. But even in an extreme example, where someone doesn’t pay the health law’s penalties for decades, the powers that the Internal Revenue Service has to collect the unpaid fines don’t change.