Now that the individual mandate for health insurance has been upheld constitutionally, the question remains: How will it be enforced?
The IRS has the ability to offset tax refunds to collect the penalty, but it can’t file a lien against the taxpayer’s assets if he or she doesn’t voluntarily pay up. Furthermore, there’s no provision in the health care law for charging interest to delinquents. The mandate first takes effect in 2014 and will result in a penalty of the greater of $95 or 1% of income above the minimum amount required to file a tax return (but no more than $285).
Don’t be surprised if Congress puts some more teeth into the law to assist IRS collections.