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Hobby Lobby finds way to avoid daily $1.3 million fines

Published: Friday, July 3 2015 11:14 p.m. MDT

Customers walk to a Hobby Lobby store in Dallas on Thursday, Nov. 1, 2012. (Tony Gutierrez, Associated Press) Customers walk to a Hobby Lobby store in Dallas on Thursday, Nov. 1, 2012. (Tony Gutierrez, Associated Press)

Our take: National craft story chain Hobby Lobby has become the poster child for private businesses opposed the government’s contraception mandate because it conflicts with the owners’ religious beliefs. Part of the prominence is the popularity of the store and the other aspect is the enormous fines the company faces by not complying. But, last week the company announced it has found a loophole to avoid the fines — at least in the short term while its lawsuit against the government is on appeal.

Washington (CNN) — By Friday, Hobby Lobby would have racked up $14.3 million in fines from the Internal Revenue Service for bucking Obamacare. But in keeping with the great American tax tradition, they may have found a loophole.

The company is facing $1.3 million a day in fines for each day it chooses not to comply with a piece of the Affordable Care Act that was set to trigger for them on January 1. The craft store chain announced in December that, because of religious objections, they would face the fines for not providing certain types of birth control through their company health insurance.

The penalty was set to go into effect on the day the company's new health care plan went into effect for the year.

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