IRS Halts New Regulations, ACA Mandate Enforcement Until New Treasury Sec. Sets Up Tax Team

Chris Gaetano
Published Date:
Feb 17, 2017

The IRS will not be issuing any new regulations, nor will it enforce the individual mandate, until the recently-confirmed new Treasury Secretary Steven Mnuchin has set up his tax team to provide more guidance, according to Accounting Today. IRS associate chief counsel Robert Wellen pointed to a new executive order from the Trump administration that demands two regulations be removed for every new one added, and so while the IRS, alongside other federal agencies, thinks of how to deal with this, Wellen said it will not make any new submissions to the Federal Register or the Internal Revenue Bulletin. It will continue to issue private letter rulings and chief council advice memorandums, however.

Similarly, the IRS will also stop enforcing the Affordable Care Act's individual mandate due to another executive order that calls on agencies, until the act is formally repealed, to "waive, defer, grant exemptions from, or delay the implementation of any provision or requirement of the Act that would impose a fiscal burden on any State or a cost, fee, tax, penalty, or regulatory burden on individuals, families, healthcare providers, health insurers, patients, recipients of healthcare services, purchasers of health insurance, or makers of medical devices, products, or medications." Consequently, returns will be processed even if the taxpayer does not indicate that they have full year health coverage. 

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