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.

KPMG observation

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). 

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