Supreme Court ACA Ruling Raises Tax Refund Possibility
The validity of the Medicare Tax and Net Investment Income Tax is contingent on the case pending before the United States Supreme Court. At issue before the United States Supreme Court is whether reducing the amount specified in the Affordable Care Act (“ACA”) to zero rendered the minimum coverage provision of the ACA unconstitutional, and whether the minimum coverage provision is severable from the rest of the ACA. If the United States Supreme Court holds that the minimum coverage provision of the ACA is unconstitutional and not severable from the rest of the ACA, the Medicare Tax and Net Investment Income Tax, which were assessed pursuant to the ACA might be eliminated.
If the United States Supreme Court holds that the minimum coverage provision of the ACA is unconstitutional and such holding is applicable to the Additional Medicare Tax and Net Investment Income Tax paid for the tax years within the statute of limitations. taxpayers will be able to request a full refund of such taxes paid and interest, as provided by law.
A formal written Protective Claim for Refund may be filed when a taxpayer’s right to a refund is contingent on future events and may not be determinable until after the statute of limitations expires.
If you wish to take action now, please contact your Smolin advisor.