Delaware Insurance Commissioner Karen Weldin Stewart has received reports of tax preparers providing bad information to those without health insurance.
Some unscrupulous preparers actually tell clients that the payments can be paid directly to that preparer, who then pockets the money, a release stated.
The reports follow a January 26 Internal Revenue Service alert warning that preparers are targeting consumers with limited English skills, primarily Spanish speakers.
Undocumented immigrants, who may seek legal status in the future and are careful not to run afoul of the law, are vulnerable to such a scam.
According to the IRS, immigrants who are not lawfully present in the United States are actually exempt from the requirement to have health insurance, because they are not U.S. citizens.
In fact, most consumers are not subject to the ACA tax penalty, because they have already purchased coverage, are covered through their employer or Medicaid, or qualify for an exemption.
A complete list of exemptions can be found at https://www.irs.gov/Affordable-Care-Act/Individuals-and-Families/ACA-Individual-Shared-Responsibility-Provision-Exemptions.
Stewart stated: “The IRS maintains a list of credentialed tax preparers at http://irs.treasury.gov/rpo/rpo.jsf. If you believe you do owe an ACA penalty payment, follow the advice of the IRS: the payment should be made only with your tax return or in response to a letter from the IRS. The payment should never be made directly to an individual or return preparer.”
