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puravidapto
Level 7
June 19, 2022
Discussion ongoing

Make CA "Individual Shared Responsibility Penalty" NOT as default

Related products:ProConnect
  • June 19, 2022
  • 4 replies
  • 10 views

Currently the "Individual Shared Responsibility Penalty" in CA is assessed by default. My idea is to make it NOT as default, and instead, make it default to have full year insurance.

Either way, it is the taxpayer and preparer who are responsible to answer the question correctly whether they have insurance or not, but the default should be the most common case. How many of our clients who file tax returns via a tax professional have insurance and do not have insurance?

Same with MA, but it is different. It will not pass if you do not fill out the 1099-HC form. 

The alternative idea is to make the input field mandatory. How many of you who forget to check the "have insurance" box and caused 5000+ penalty assessed? I hope it is zero, but I guess it is not. 

This topic has been closed for replies.

4 replies

BobKamman
Level 15
June 19, 2022

I think Intuit has to do what the Franchise Tax Board tells it to do.  But it would be a good idea for the default to be "have coverage" on returns filed by full-year nonresidents.  Otherwise, FTB will continue trying to collect $1,600 from 300 million Americans who don't live there.  

puravidapto
Level 7
June 20, 2022

BobKamman, the Franchise Tax Board can tell Intuit what the final format it should be, but I doubt it can enforce the input method. This concerns one state, so there might not be a lot of support, can you please vote for it? 

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BobKamman
Level 15
June 20, 2022

I have no doubt that it can enforce the input method.  And does.  

October 23, 2023

Thanks for the idea to make CA "Individual Shared Responsibility Penalty" NOT as default . We are changing the status to "Open for voting" since it has been around for over 30 days and no longer considered "New".

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