The Treasury Inspector General for Tax Administration (TIGTA) is concerned that the IRS is not prepared to combat the onslaught of tax fraud that is anticipated once the IRS begins paying premium tax credits associated with the Affordable Care Act (ACA). TIGTA recognizes that the IRS has systems in place to combat fraud in general; it has always been one of their top priorities. But specific ACA fraud is another story. The IRS is not prepared for this new responsibility which is bound to reveal unforeseen nuances. The IRS has tested its systems that compute subsidies under ACA and the testing revealed flaws that could result in the IRS being unable to identify fraud prior to the issuance of credits. In plain English, what this means is there is a significant risk that the IRS will inadvertently pay out credits to people who don’t really qualify. According to the IRS, they have already made system corrections prior to the issuance of today’s report and they will be prepared.
The IRS’ new Affordable Care Act website is up and running. Most of the new content is organized into three main parts: (1) Individuals & Families, (2) Employers, and (3) Other Organizations.
The Individuals & Families page is further broken down into two subtopics designed to educate the public on what they need to consider immediately (in 2013) and what they should look forward to in 2014. Individuals should explore and begin planning for open enrollment in the Health Insurance Marketplace, which opens October 1, 2013.
The Employers page has a separate set of instructions for small employers (fewer than 50 full-time employees) and large employers (50 or more full-time employees). It helps to educate employers on their specific coverage and reporting requirements and also explains what employer credits might be available.
Some organizations will be subject to special rules under the Affordable Care Act. These “other organizations” include insurers, miscellaneous business types, non-profits, and government agencies.
The ACA website features a nifty news bar so we can always stay informed of new developments related to the Affordable Care Act. It also very neatly lists all the various tax provisions, both in layman’s terms and in the form of news releases, notices, regulations, revenue procedures, revenue rulings, and Treasury decisions for the tax lawyer and studious type. Lastly, the new ACA website includes links to related federal government websites like the Department of Health & Human Services, the Small Business Administration, and the Department of Labor.