Obamacare: The Next IRS Tax Nightmare?
President Obama’s health reform law, commonly known as “Obamacare”, has attracted intense media attention every step of the way – from the controversial initial passage of the law, to the troubled rollout of the HealthCare.gov website, to the strong enrollment numbers in early 2014.
In 2015, Obamacare is set to once again dominate the headlines – this time, in relation to IRS enforcement. Regardless of your opinion on the political merits of the law, Obamacare is likely to result in major IRS tax headaches for taxpayers, especially in 2015. That’s because the IRS will be integrating data from new health insurance exchanges and requiring taxpayers to submit information regarding their health care coverage on their tax return for the first time ever. And as you know, the IRS isn’t exactly known for their user-friendly approach. A recent Politico article reports on the troubled waters ahead:
If consumers thought logging on to HealthCare.gov was a headache, sorting through complex forms ahead of tax deadline day 2015 is their next big Obamacare challenge.
The health care law’s benefits are rolling out, but its major math problems start next year as the IRS tries to ensure that millions of Americans are correctly calculating their benefits and that those who don’t have coverage are penalized unless they qualify for an exemption.
That means much new paper-shuffling between now and April 15, which could be especially confusing for low- and middle-income Americans unaccustomed to lots of reporting to the IRS. The insurance exchanges and employers must send consumers details about their health plan and benefits or exemptions in time for them to file a tax return. If any of that information is delayed or wrong, tax refunds could be delayed.
If you enjoy complex tax forms and lengthy conversations with the IRS, 2015 will be a great year for you. For the rest of us, unfortunately, 2015 has the potential to become the year of the IRS tax nightmare. As if dealing with the IRS wasn’t difficult enough already!
While this is bad news for taxpayers, the good news is that if you’re dealing with an IRS controversy, we can help. We’ll represent your interests before the IRS – allowing you to get back to enjoying your life. Contact us today to learn more.