On June 17, 2021, the U.S. Supreme Court ruled that the plaintiffs did not have standing to challenge the constitutionality of the “individual mandate” in the Patient Protection and Affordable Care Act (PPACA). The plaintiffs could not show that they suffered, or would suffer an injury from the enforcement of the coverage mandate which is necessary to be have standing. While the Supreme Court’s 7-2 decision avoided the question of constitutionality of the individual mandate, the health care law stays in place. See the Journal of Accountancy’s Summary for more details.
This decision was a reversal of the Fifth Circuit decision indicating the plaintiffs had standing to challenge certain provisions of PPACA. A number of businesses and individuals had filed 2016 and 2017 amended federal returns as a protective claim for refunds, should the U.S. Supreme Court reverse the PPACA. As a result of the announcement, the IRS will not be refunding any income taxes for any protective claims filed.
We will be reaching out to clients individually as a reminder. For more information, please contact your PG&Co tax professional at 401-831-0200 or firstname.lastname@example.org.