U.S. Supreme Court: Implications for protective refund claims for ACA-related taxes and fees
U.S. Supreme Court upholds ACA
U.S. Supreme Court decision concerning protective refund claims for ACA-related taxes
The U.S. Supreme Court today (in a 7-2 decision) rejected claims that the Affordable Care Act (ACA) minimum essential coverage provision under section 5000A(a) was unconstitutional, finding that the plaintiffs in the case lacked standing.
The case is: California v. Texas, No. 19-840 (S. Ct. June 17, 2021). Read the Court’s opinion [PDF 295 KB] that includes concurring and dissenting opinions.
Tax professionals were watching for the decision in California v. Texas because of potential implications for various tax and fee provisions associated with the ACA, including the "net investment income tax” (NIIT)—a provision added as a means of funding the ACA (along with other taxes and fees) by the “Health Care and Education Reconciliation Act of 2010” (HCERA).
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.