Health care reforms changes to be made by the IRS

Health care Reform Update

Healthcare Reform Update

The Supreme Court’s ruling to uphold the Affordable Care Act means significant tax return changes.

Now that the top court in the country has determined that most of the health care reforms will stand, the Internal Revenue Service has just over two years to put its new systems in place to manage their part of the system.

This brings the IRS into the debate and asks whether or not the agency is capable of doing its part.

It also asks whether this agency can fairly and accurately enforce the laws that are being put into place regarding the medical coverage of millions of Americans, while it simultaneously collects the taxes necessary for running the country’s government.

The new health insurance reforms give the IRS the responsibility for incentives and penalties.

Those who purchase medical insurance can qualify for tax breaks that will help them to pay for their coverage, while those who do not purchase policies may face certain tax penalties. This is true for both individuals and certain businesses.

These changes will require the agency to put all new regulations, publications, computer programs, and forms into place. It will also be required to create and offer a significant program to help to inform and educate tax professionals and payers so that the returns can be understood and accurately filed.

According to the overseer of the IRS, the Treasury inspector general, the health care reforms involve “the largest set of tax law changes in more than 20 years.” The agency will need to begin a massive hiring campaign in order to make the necessary changes and will need a large budget increase to accomplish that goal. Republicans in Congress have already taken aim at that increase in spending, as they continue their efforts to annihilate this signature initiative of President Obama.

According to Sabrina Siddiqui, a spokesperson for the Treasury who made a statement regarding the IRS health care reforms, “The overwhelming majority of funds used by the agency to implement the Affordable Care Act go to administer the premium tax credits, which will be a tax cut averaging about $4,000 for more than 20 million middle-class people and families.”

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