What does this mean to me?
You have a balance on your tax account. The notice advises you that there is a payment due, states the amount of the payment, including any applicable interest, and requests payment within 21 days.
The law prohibits the IRS from taking enforcement action, such as filing the Notice of Federal Tax Lien or issuing a Levy, for SRP balances.
Penalties are not charged; however, interest will be charged. In addition, the IRS may apply future refunds to the SRP balance until it is full paid.
How did I get here?
You owe the SRP because you did not maintain the required health coverage for yourself and, if applicable, your dependents or did not qualify for an exemption from coverage. This requirement only applies to tax years 2014-2018. For months beginning after December 31, 2018 the amount of the SRP is reduced to zero.
The individual SRP Provision of the Affordable Care Act requires taxpayers to do at least one of the following:
- Have qualifying health coverage called “minimum essential coverage”;
- Qualify for a health coverage exemption; or
- Make a shared responsibility payment with their federal income tax return for the months that they were without coverage or an exemption.
For specific information about the SRP requirements based on year, as well as exemption information, click here.