Revenooers Bracing For Health Care Appeals

Of course, we’re all awaiting the upcoming ruling by the Supremes, after they dig into Obama’s health care fiasco.  And, indeed, most folks we know are awaiting the final action which would overturn the whole mess, allowing legislators of reason to start over and come up with something which actually makes sense, and which all of us can embrace.

Meanwhile, it sounds like the Revenooers are cranking up their own internal machine, which may have to kick into gear if (heaven help us) the Supremes allow the law to stand.  Recall that the Patient Protection and Affordable Care Act (ACA) enacts not only significant changes to the Nation’s health care system, but also provides for a raft of new taxes to fund the fiasco.

And where there are taxes, there are the inevitable beefs which ensue between taxpayers and the IRS, many of which beefs end up before the IRS Office of Appeals, where many are resolved one way or the other.

So here comes the Treasury Inspector General for Tax Administration (TIGTA) which recently performed an audit, initiated as part of TIGTA’s efforts to evaluate the IRS plans for implementing the various ACA provisions, including a survey of IRS’ own ACA office, which is of a mind that any impact on Appeals should be minimal until after tax year 2013, by which time many taxpayers will have awaken to find that new taxes have come home to roost.

Various provisions of the ACA will, undoubtedly, affect Appeals when the inevitable taxpayer/IRS disagreements become manifest.  TIGTA notes some of the ACA provisions which just might result in such disputes:

  1. Delivering tax credits to businesses, tax-exempt organizations, and individuals to assist in covering the cost of health coverage;
  2. Administering the requirement for individuals to purchase health coverage (only for those who are deemed able to afford such coverage) or be subject to a penalty on their individual Federal tax returns; and
  3. Administering the requirement for certain large employers to offer affordable health insurance coverage to employees or be subject to a penalty.

Says TIGTA, “As Appeals moves forward with its planning efforts, we

believe management should develop a more formal approach to its ACA planning activities to ensure they are ready to resolve taxpayer requests of ACA-related issues in a timely and effective manner.”

We can hardly wait…..

CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters.  You should consult your CPA regarding the implications to your own particular situation.

Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno.  He can be reached at 831-7288, welcomes comments at jquinn@ashleyquinncpas.com, and invites readers to consider his other commentary at http://blog.nolo.com/taxes.

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