IRS Tax Controversy: Will “ObamaCare” Lead to Increased IRS Scrutiny?
Over the last several months, the rollout of “ObamaCare” has generated controversy, to say the least. But whatever your opinion on the politics of the matter, the Affordable Care Act will have a significant impact on the IRS and on taxpayers. Specifically, the IRS will have access to the personal data of individuals and families who purchased health insurance through the new health exchange.
A recent TheBlaze.com article reports on the specifics:
The Internal Revenue Service this week will publish a final rule requiring Obamacare health insurance exchanges to hand over key personal data to the IRS, which will use the information to implement the tax aspects of the controversial health care law.
The IRS rule covers health exchanges that sell insurance to individuals, and it takes effect this year. That means people enrolled in an Obamacare exchange this year will have their information given to the IRS as soon as it’s needed for tax purposes.
Information to be handed over from Obamacare exchanges includes names, addresses, taxpayer identification numbers, insurance premium amounts, the name of the insurance issuer, and the insurance plan policy number issued by the exchanges.
The IRS says this data is needed to assess whether people are eligible for a health insurance tax credit. “This tax credit can help make purchasing health insurance coverage more affordable for people with moderate incomes,” according to the IRS.
Whether you are in favor of ObamaCare or not, the fact that the IRS will have increased access to taxpayer information is concerning. The IRS is already known for their brutal collection tactics – once they have determined that a taxpayer owes them money, they’ll unleash a barrage of threatening letters, phone calls, and in-person visits. If they’re not able to resolve the matter to their satisfaction, the IRS will often garnish taxpayer paychecks, seize assets, and even force businesses to close. What will the IRS do with access to even more taxpayer information? Only time will tell, so be sure to stay tuned.
If you’re facing an IRS dispute, we can help you put the controversy behind you and get back to enjoying your life. Contact us today to learn more!