The U.S. Supreme Court has agreed to hear California v. Texas (U.S. Supreme Court Docket 19-840), which addresses the constitutionality of the Affordable Care Act (ACA). If the Court holds that all, or a portion, of the ACA is unconstitutional, taxpayers may be entitled to refunds for the taxes imposed by the ACA. These include the extra 0.9% Medicare tax and the 3.8% net investment income tax that have been paid on prior year returns.
Refunds are limited to years where the statute of limitations is still open. As a result, taxpayers should consider filing protective refund claims to keep the period open for 2016 claims. These protective refund claims must be filed by Wednesday, July 15, 2020.
You are not obligated to file a protective claim but if you do not and the ACA is overturned by the courts you will not be able to recover taxes for any closed years. And there is no guarantee that if the ACA is overturned and you file a protective claim that you will get refunded the ACA taxes you paid.
Unfortunately, we are still working on 2019 tax returns and will be unable to do this for you. Click here for a template for you to fill out, sign, and send to the IRS (Via Certified Mail) at the address below:
DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
FRESNO, CA 93888-0422
Please keep a copy and send one to us as well.
We will keep you posted as we learn more.