Preserving right of claim for 2016 tax returns

The hottest topic in tax planning right now is the protection of right to claim a refund for 2016. It’s likely a hot of hot air about nothing.

Beginning on 2016 wealthy people paid additional taxes mandated by the Affordable Care Act. If the Affordable Care Act is deemed unconstitutional, then theoretically the taxes it instituted would also be unconstitutional. Possibly the issue of refunds could wind up in the courts and maybe be the subject of yet another Supreme Court review in some future year. In reality, based on all available information, that won’t happen. The reason this is even in the news is that the a Trump administration is pushing for the complete abolishment of the law in court.

To preserve your right to claim a refund for tax year 2016 should the ACA be deemed unconstitutional, you must file a Protective Claim for Refund on or before the expiration of the statute of limitation. That expiration deadline is tomorrow for most people.

Some tax publishers are promoting the idea. It real life, nobody in the legal field expects this outcome.

The bottom line is that I will file the Claim of Refund at your request while advising you that you are wasting your money on the filing.


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