March 27, 2012 10:43 am

Supreme Court Considers Obamacare

The U.S. Supreme Court is determining whether the personal mandate for every individual to carry health coverage is constitutional. This personal mandate is set to take effect in 2014; those who refuse to carry health coverage will be subject to a penalty collected by the IRS. Arguments on the constitutionality of Obamacare are set for the end of March, with a final decision expected by the end of June.

Two former IRS commissioners, Mortimer Caplin and Sheldon Cohen, have submitted briefs arguing that the court cannot render a decision as yet because the case is being presented too early. Essentially, they are saying that a constitutional challenge cannot be heard before the personal mandate takes effect in 2014.

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Tax Glossary

Private letter ruling

A written determination issued to a taxpayer by the IRS that interprets and applies the tax laws to the taxpayer’s specific set of facts. A letter ruling advises the taxpayer regarding the tax treatment that can be expected from the IRS in the circumstances specified by the ruling. It may not be used or cited as precedent by another taxpayer.

More terms