Insurance

Two Circuits Now Give Priority Status to Obamacare’s Individual Mandate Penalty

The Affordable Care Act’s ‘individual mandate’ was a tax measured by income, thus giving the IRS a priority tax claim.

Businesses continue to face a myriad of challenges in today’s economy. Initially, the COVID-19 pandemic resulted in the widespread closure of multiple businesses. Now, U.S. consumer demand for goods is strong, but supply chain woes persist. Compensation costs have increased, while inflation hinders the benefit to workers from that higher pay. The COVID-19 vaccination rate continues to climb, but business owners experience continued disruption from emerging COVID-19 variants.

Sixth Circuit BAP Gives Priority Status to Obamacare’s Individual Mandate Penalty

A question may be headed to the Sixth Circuit, where debtors hope to create a circuit split.

March 2022