By Anna McDonald and Benjamin Trujillo, JD, LLM – Senior Advisor
On Thursday, the Supreme Court dismissed the third (and likely final) challenge to invalidate the Affordable Care Act, known as Obamacare.
Plaintiffs in the case alleged that without a monetary penalty for failing to obtain minimum essential health insurance coverage, the Act as a whole was unconstitutional. By ruling that the plaintiffs lacked standing, the Supreme Court did not address the constitutional issues raised by the lack of a monetary penalty. The Supreme Court wrote that in order to have standing the plaintiff must allege a personal injury that is a fairly traceable injury from the alleged unlawful conduct, and in turn ruled the plaintiffs lacked the standing to raise questions of the Act’s validity.
Due to Thursday’s ruling any protective claims filed for future refunds on the net investment income tax paid by high earners will not be applicable.
“Given the current layout of the court, a ruling against the ACA was not far-fetched,” said Senior Advisor Benjamin Trujillo, JD, LLM. “Therefore, filing the protective claim insured that if the ACA had been deemed unconstitutional, taxpayers who had been paying it would have preserved their shot at receiving a refund; a refund that for many of our clients was worth tens of thousands of dollars. It is just good practice to help our clients protect not only their current assets, but their claims for future assets.”
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