It's also important to mention that the IRS cannot be enforced through jail time, liens, or other collection activity. The only method the IRS can collect the fee if you choose not to pay it is by withholding money you would otherwise get back as a tax refund.
A full list of exemptions to the penalties is available on www.Healthcare.gov, but in essence, taxpayers are exempt if:
• The lowest-priced policy available to you costs more than 8.13 percent of your household income.
• You were uninsured for no more than two consecutive months during the year.
• You’re a U.S. citizen living abroad.
• You're incarcerated.
• You experienced a hardship during the year.
Even Ways and Means Chairman Rep. Kevin Brady (R-Texas) has said that including a repeal of Obamacare’s penalties would be politically problematic given the Senate’s inability to pass repeal of the healthcare law yet.
The Congressional Budget Office has estimated that repealing the individual mandate would save $416 billion over a decade. That's because without it, fewer people would enroll in Medicaid or buy federally subsidized coverage on insurance exchanges. The money represents a tempting revenue source for GOP tax writers whose plan for extensive tax cuts would add an estimated $1.5 trillion to the nation's debt over 10 years.