The tax man cometh to police you on health care

[PoliticAverse]

SWASHINGTON (AP) - The Supreme Court's decision to uphold most of President Barack Obama's health care law will come home to roost for most taxpayers in about 2 1/2 years, when they'll have to start providing proof on their tax returns that they have health insurance.

That scenario puts the Internal Revenue Service at the center of the debate, renewing questions about whether the agency is capable of policing the health care decisions of millions of people in the United States while also collecting the taxes needed to run the federal government.

Under the law, the IRS will provide tax breaks and incentives to help pay for health insurance and impose penalties on some people who don't buy coverage and on some businesses that don't offer it to employees.

...

The health care law "includes the largest set of tax law changes in more than 20 years," according to the Treasury inspector general who oversees the IRS. The agency will have to hire thousands of workers to manage it, requiring significant budget increases that already are being targeted by congressional Republicans determined to dismantle the president's signature initiative.

Read the rest at: http://apnews.myway.com/article/20120707/D9VS2E3O0.html

[Nye Bevan]

1. And if we had a tax-funded single payer system

the IRS would be involved in collecting the relevant taxes.

Not sure what the issue is here.

[Gman]

2. Right wing talking points

Like always, drawing drastic as well as stupid conclusions.

[PoliticAverse]

3. Did you read the article ?

Is the IRS now spouting 'right wing talking points' ?

[rfranklin]

5. Your reading comprehension is poor...AP does not say that the IRS said that...

but they are counting on you to make that assumption. The statement about thousands of new IRS employees is not attributed to anyone but it does echo the crazy claims that Republicans are making---

The IRS budget request for fiscal year 2012 shows that the agency is seeking at least 1,269 full-time equivalent employees (FTEs) at a cost of $473 million to help implement the Patient Protection and Affordable Care Act.

But many of them are needed to deliver new tax credits, not to dun taxpayers. The agency is seeking to add 291 "revenue agents" — most of them (193) to "ensure accurate delivery of tax credits." The agency’s technology staff would see the biggest increase with the addition of 537 IT program analysts and specialists.

Still, Republican Sen. John Barrasso of Wyoming mischaracterized the IRS budget request in an interview on Fox News, falsely suggesting that all of the new hires will be auditing taxpayers.

http://www.factcheck.org/2011/02/irs-and-the-health-care-law-part-ii/

Stop posting garbage.

[Zalatix]

16. Yup, because no new IRS agents are needed to tell if taxpayers have insurance!

If you don't have insurance and you file a tax return the work needed to determine if you are in compliance will be done by the tax fairy, not actual workers.

[rfranklin]

23. And if you fixate on this you are part of the right wing propaganda push...

You are being played my friend by the mighty Wurlitzer.

[4th law of robotics]

10. If the fine for not having insurance is a tax

and that's how it was deemed constitutional, then that implies that the IRS will be involved in collecting/enforcing that tax.

[rfranklin]

11. Granted but the Republicans are making wild-assed claims to bolster their politicking...

When a constituent wrote a letter to U.S. Sen. Saxby Chambliss, R-Ga., in support of the Patient Protection and Affordable Care Act of 2010, his office replied with a three-page defense of his opposition to the law that the recipient shared with us.

One argument concerned new tax credits, taxes and a host of other rule changes for businesses and individuals that will require new technology, administrators and paperwork to implement. This boosts the Internal Revenue Service’s workload.

"In order to fully enforce the provisions of this bill, the Internal Revenue Service estimates that it will be required to hire an additional 16,500 agents at a cost of $10 billion to the taxpayer," the Chambliss reply said.

PLITIFACT says FALSE!

http://www.politifact.com/georgia/statements/2011/may/04/saxby-chambliss/us-sen-chambliss-says-16500-irs-agents-needed-heal/

[hughee99]

4. Sounds like it's creating jobs already. n/t

[dixiegrrrrl]

6. what if you do not pay income taxes?

Many people are drawing early Soc Sec. but not old enough for Medicare.
how is that handled, I wonder?

[PoliticAverse]

12. The tax credit is 'refundable', meaning you can receive it as a payment from the IRS even if

you don't owe any income tax.

[dixiegrrrrl]

14. But you would have to file a tax form first, I expect?

declaring no taxable income?

[PoliticAverse]

18. Actually apparently you can get the credit through an application to HHS and the credit will be paid

direct to your insurance company. The specifics aren't finalized, see the IRS proposed regulations: http://www.irs.gov/pub/irs-drop/reg-119632-11.pdf

Also: Affordable Care Act Tax Provisions http://www.irs.gov/newsroom/article/0,,id=220809,00.html

[dixiegrrrrl]

21. You are a marvelous font of information..thanks!

[PoliticAverse]

22. The proposed regulations indicate that you will eventually have to file an official return to

reconcile the credit you receive from HHS with your income if you want to receive future advance credits:

The final regulations issued by HHS provide that advance payments
of the premium tax credit will not be permitted where the relevant
taxpayer has received advance payments in the reference tax year and
failed to file a return reconciling the advance payments with the
actual premium tax credit. (77 FR at 18453). Therefore, these proposed
regulations provide that the IRS will disclose to HHS that a relevant
taxpayer who received an advance payment of a premium tax credit in the
reference tax year did not file a return reconciling the advance
payments with any premium tax credit available.

[dionysus]

7. hannity thanks you for spreading his talking points.

[PoliticAverse]

19. Did Hannity really call the 16,500 additional auditor # "a made-up number with no basis in fact," ?

[Avalux]

8. "The law, however, severely limits the ability of the IRS to collect the penalties."

"There are no civil or criminal penalties for refusing to pay it and the IRS cannot seize bank accounts or dock wages to collect it. No interest accumulates for unpaid penalties."

What about that doesn't make sense? This article is nothing more than Republican whining and IRS hand-wringing. The IRS can't enforce the penalty. Most they can do is send nasty letters.

[PoliticAverse]

13. The IRS can deduct the penalty from any tax refund you receive. n/t

[Avalux]

20. Yes, but that doesn't require tons of extra people, as would enforcement. n/t

[FLyellowdog]

9. "includes the largest set of tax law changes in more than 20 years,"

affecting some corporations and the top 2% of taxpayers. How is this a bad thing?

[zoechen]

17. Just curious

What segment of the population do you think will not buy insurance, I mean besides business who will just pay the penalty because it will be cheaper then providing insurance.

[zoechen]

15. Hey whats the problem?

Thousands of new jobs in the public sector, whats not to like?