Notice CP166 - Health Coverage Requirement

Type: Health Coverage | Level: medium

IRC Section: IRC § 5000A

Response Deadline: 30 days

This notice is about health insurance — specifically, a potential penalty related to the Affordable Care Act's individual mandate. If this is for a tax year before 2019, the federal penalty may apply. For 2019 and later, the federal penalty is $0, but some states have their own individual mandates.

A CP166 is a notice regarding health coverage requirements. It informs you of a potential Shared Responsibility Payment related to the Affordable Care Act's individual mandate. Note: The federal individual mandate penalty was reduced to $0 starting in 2019, so this notice typically applies to older tax years or state-level mandates.

Common Triggers

• No health coverage
• Exemption not claimed
• Coverage gap

Resolution Steps

1. Step 1: Review the notice and penalty amount
2. Step 2: Check if you qualify for an exemption
3. Step 3: Contact us to discuss options
4. Step 4: Gather health coverage documentation
5. Step 5: Respond within 30 days

Common Questions About CP166

Is the Obamacare individual mandate penalty still in effect?

The federal individual mandate penalty was reduced to $0 starting in tax year 2019. However, some states (California, Massachusetts, New Jersey, Rhode Island, and DC) have their own individual mandates with penalties. If your CP166 is for a pre-2019 tax year, the federal penalty may still apply.

Do I have to pay a penalty from years ago?

If the assessment is for a pre-2019 tax year and you did not have qualifying health coverage or an exemption, the penalty may still be collectible. However, you may qualify for a hardship exemption or other relief. A practitioner can review your specific situation.

Additional Resources