Individuals who don’t purchase health insurance may lose their tax refunds according to IRS Commissioner Doug Shulman. After acknowledging the recently passed health-care bill limits the agency’s options for enforcing the individual mandate, Shulman told reporters that the most likely way to penalize individuals that don’t comply is by reducing or confiscating their tax refunds.
It’s not your money, it’s theirs and they’ll decide how much to give you.
Of course, this only works if they mandate withholding that’s on average greater than the taxes they’ll take. So I fully expect that measure to follow.