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Regulation and Compliance > Federal Regulation > IRS

IRS posts another 8965 PPACA exemption instructions draft

By Allison Bell

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The Internal Revenue Service (IRS) has come out with a new version of a document that’s important to foes of the federal individual health insurance mandate: a draft of the instructions for the 2015 Form 8965.

Taxpayers can use the 2015 Form 8965 to apply for exemptions from the Patient Protection and Affordable Care Act (PPACA) individual coverage mandate for the 2015 coverage year.

In August, the IRS frustrated 8965 form watchers by posting a proposed 2015 revision of the form on its form draft site, then taking the draft off the site and leaving a placeholder icon in its place for weeks.

See also: IRS tantalizes 8965 PPACA form watchers

PPACA and federal regulations have created many exemptions consumers can use to avoiding making “shared responsibility” penalty payments, including having a low income, spending time in jail or prison, or getting a kind of alternative to conventional health coverage from a health care sharing ministry.

The new 2015 instructions draft is similar in many ways to the 2014 exemption instructions, but it includes a penalty payment calculation worksheet, and several new vignettes showing how fictional low-income taxpayers could escape from the mandate.

The proposed revision also includes new advice aimed at members who have received exemptions because they are “members of certain religious sects” or “members of Indian tribes.”

If, for example, a young member of a family shares the family’s religious mandate exemption, that member’s exemption “applies until the first full month following the individual’s 21st birthday, unless the individual reports to the Marketplace [the PPACA public exchange] that he or she no longer qualifies for the coverage exemption,” according to the text of the draft.

If a member of a tax household has a mandate exemption based on belonging to an Indian tribe, “you must report it on Form 8965 every year it applies,” according to the draft text. “It applies until the individual reports to the Marketplace that he or she no longer qualifies for the coverage exemption.”

See also: Highways to PPACA tax penalty freedom

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