Notice of Levy for Health Insurance - Income tax

[Roh]

I am international student in Massachusetts, USA. I was having Foreign Health insurance during year 2010 and my university did allowed it. I filled the income tax for year 2010, and now I have received a Notice of Levy. This notice is regarding health insurance is not valid in state of Massachusetts USA and I have to pay penalty of 1000 $.

It also states that if I don't pay the penalty or appeal to this notice my Bank accounts will be blocked.

Are Foreign Health Insurances not valid in Massachusetts state?
What should I do about this notice?

[immihelp]

Did you buy the insurance from outside the U.S.?

If yes, that insurance may not meet the requirements of Minimum Creditable Coverage in Massachusetts.

[kabkaba]

You can also consult a lawyer. As a non-resident for tax purposes you may not fall under the insurance mandate.
In general it is not advisable to get insurance from outside US though.

[Roh]

Thanks for the replies,

@ Immihelp,

Yes I have Tata AIG insurance from Indian company.
Well the point that MCC is meet or not come after the fact that they first consider looking at the policy. Currently the situation is that they have asked to appeal this notice so that I get hold on the account and no action is taken against me also I get to say my point.

Secondly, my university accepted this insurance as it was meeting the minimum requirement so looks like MCC will not be an issue.

@kabkaba

I was on F1 with CPT for 6 months and on OPT for rest of the year. So am not sure if they consider me as resident or non resident.
It was a requirement for the university that student should have insurance with MCC, and university insurance was costly so I got the equivalent coverage from my home country which was little cheap. Just to save few bucks as I was student I did not had lot of money neither was I aware of the fact that overseas insurance are not advisable, but my university accepted it.

Can you tell me depending on my situation weather I fall under Non resident or resident category.

[immihelp]

You are U.S. resident for tax purposes.

[kabkaba]

In F1 status, you are non-resident for tax purposes. Is this your first year of filing tax return?
You may still be resident for MA state tax purposes. There are complications involved. Check out IRS and MA tax department websites for more information.