IRS officials need to improve their implementation of President Obama’s health care overhaul, according to a new report from the Treasury Inspector General for Tax Administration.
“The IRS must ensure that all the information needed to accurately and effectively administer these provisions is provided by employers, insurers, and taxpayers,” inspector general J. Russell George said in a statement on the report. “By doing so, the IRS can significantly improve its ability to manage the responsibility placed on employers, insurers, and taxpayers who must comply with the various Affordable Care Act requirements, and also improve its ability to accurately administer ACA fees, penalties, and tax credits.”
Forty of the 500 provisions in Obamacare change the tax code, but TIGTA emphasized the need to improve implementation of four in particular: 1502, which allows the IRS to decide who is in violation of the individual mandate; 1514, which requires companies with more than 50 employees to meet the law’s minimum requirements for health coverage; 9010, which “requires large employers to report the total dollar value of health insurance coverage sponsored by the employer on each employee’s annual Form W-2;” and 9010, which forces health insurance companies to report their annual net premiums so that the IRS can “impose an annual fee on health insurance providers whose net premiums written during the calendar year exceed $25 million.”
TIGTA found that “the implementation plan for Section 9002 that requires the inclusion of employer health coverage on Form W-2, Wage and Tax Statement, does not address how the IRS will use the information or how the IRS will ensure employer compliance with this information reporting section.”