The IRS was selected as one of the main agencies to implement President Obama’s new health care law. Many of the provisions will go into effect next year. But it is difficult to see how the IRS will be able to get all its ducks in a row amid the tax exempt applications scandal, congressional scrutiny of overspending, and various leadership changes. All this turmoil seems to have come at a time when the IRS will be needed most.
There were more than 40 tax code changes associated with the Affordable Care Act, many of which are still being hammered out. Here are some of the tasks that the IRS faces in the coming months:
- collect tax penalties from individuals who fail to obtain insurance and employers who fail to provide it
- define key terms in the law such as “minimum value,” and “minimum essential coverage”
- issue guidance on new forms
Will the IRS be ready, or will they try to request an extension?