From reading CFR 418.1110. titled “What is the effective date of our initial determination about your income-related monthly adjustment amount?” it appears to me the likely answer is the SSA would have defaulted to using your tax information from three years ago until you file your return for two years prior to determine any IRMAA surcharges. If that is correct then that part of the Code of Federal Regulations states –
“b) When we (the SSA) have used modified adjusted gross income information from IRS for the tax year 3 years prior to the effective year to determine your income-related monthly adjustment amount and modified adjusted gross income information for the tax year 2 years prior later becomes available from IRS, we will review the new information to determine if we should revise our initial determination. If we revise our initial determination, the effective date of the new initial determination will be January 1 of the effective year, or the first month you were enrolled or re-enrolled in Medicare Part B if later than January.”
Like other Humble Dollar commenters I would encourage you to get current with your tax filings to resolve this issue for you or so your executor does not have this mess to deal with after you are gone if you owe any additional amount for IRMAA income based surcharges. My guess is that absent meeting a statutory reasonable cause for late filing your 1040 that the determination of late IRMAA premiums may be followed with a non-payment demand for payment in full with the serious potential consequences of loss of insurance coverage if timely payment in full is not paid.
Not filing may not be a big deal if you don’t have a balance due, and are not trying to game the system for some reason. But yes, if you have a balance due, or are attempting to use one of the many phoney arguments against filing, you can get yourself in a heap of trouble, boy!
Besides jail/fines, be aware, unlike private creditors (like credit card companies or medical providers) who must sue you and win a court judgment before they can touch your paycheck or bank account, the IRS does not need a court order to seize your property, freeze your bank accounts, or garnish your income.
From reading CFR 418.1110. titled “What is the effective date of our initial determination about your income-related monthly adjustment amount?” it appears to me the likely answer is the SSA would have defaulted to using your tax information from three years ago until you file your return for two years prior to determine any IRMAA surcharges.
If that is correct then that part of the Code of Federal Regulations states –
“b) When we (the SSA) have used modified adjusted gross income information from IRS for the tax year 3 years prior to the effective year to determine your income-related monthly adjustment amount and modified adjusted gross income information for the tax year 2 years prior later becomes available from IRS, we will review the new information to determine if we should revise our initial determination. If we revise our initial determination, the effective date of the new initial determination will be January 1 of the effective year, or the first month you were enrolled or re-enrolled in Medicare Part B if later than January.”
Like other Humble Dollar commenters I would encourage you to get current with your tax filings to resolve this issue for you or so your executor does not have this mess to deal with after you are gone if you owe any additional amount for IRMAA income based surcharges.
My guess is that absent meeting a statutory reasonable cause for late filing your 1040 that the determination of late IRMAA premiums may be followed with a non-payment demand for payment in full with the serious potential consequences of loss of insurance coverage if timely payment in full is not paid.
William, your analysis is helpful.
How could failing to file a tax return more than 2 years late possibly end well? The IRS will get their money with penalties and interest.
I have known people who did not file tax returns for many years. When the IRS finally discovered this omission, it was not a good experience.
Not filing may not be a big deal if you don’t have a balance due, and are not trying to game the system for some reason. But yes, if you have a balance due, or are attempting to use one of the many phoney arguments against filing, you can get yourself in a heap of trouble, boy!
Besides jail/fines, be aware, unlike private creditors (like credit card companies or medical providers) who must sue you and win a court judgment before they can touch your paycheck or bank account, the IRS does not need a court order to seize your property, freeze your bank accounts, or garnish your income.