Tax News Update    Email this document    Print this document  

January 19, 2023

Fourth Circuit holds ACA's shared responsibility payment qualifies as an income, not excise, tax

In United States v. Fabio Alicea, et ux., the Fourth Circuit has reversed a district court to hold that the shared responsibility payment required under the Affordable Care Act (ACA) qualifies as a tax measured by income, not an excise tax entitled to priority in a bankruptcy proceeding.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor