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IRS Wants More Money, Agents To Enforce O-Care

From the Fiscal Times:

Obamacare’s Next Challenge: IRS Verification

By Brianna Ehley | April 3, 2014

Now that the open enrollment period has come to a close, the next challenge for Obamacare lies with the cash-strapped Internal Revenue Service, which is tasked with enforcing a handful of new provisions under the president’s healthcare law—including issuing penalties to Americans without health insurance.

Here we go again with the ‘cash strapped’ IRS. But how could any of this be a surprise? We are now in the fourth year of Obama-Care.

The agency is also responsible for verifying the subsidy eligibility of more than 83 percent of the 7 million people who have signed up for insurance through the health exchanges.

Why is it that this shocking number of all the people who are getting taxpayer subsidies via Obama-Care is only ever mentioned in passing in articles about other topics? And how on earth can this be sustainable?

Given the new burden, many are wondering if the agency can handle the additional load especially since the agency has had little success in closing the country’s $385 billion tax gap (last measured in 2006). That gap includes non-payments, underpayments and downright fraud.

Another minor matter that never gets any media attention. Probably because so much of the fraud is done by prisoners and illegal aliens. But surely there won’t be any fraud under Obama-Care.

Under the new health law, the IRS is responsible for enforcing 45 new provisions including issuing penalties to Americans who are without health coverage after the open enrollment deadline, which ended on March 31. In addition, the agency is charged with verifying whether people who were approved for subsidies actually qualify and then helping to distribute those billions of subsidy dollars to people who purchased coverage on the state and federal exchanges, among other things.

After all, they do such a great job redistributing income via the income tax. (E.g., the ‘earned income’ credit.)

Administering the subsidies will be a heavy lift for an agency that claims to already be overburdened and under-budgeted…

Remember back in 2010, when the House Ways and Means Committee Republicans issued a report saying the IRS could need as many as 16,500 additional auditors, agents and other employees to investigate and collect billions in new taxes from Americans? (Which was actually based on calculations by the CBO.)

Remember how people on our side were mocked for citing that 16,500 figure? But so far the IRS has already been given an increase of nearly $1.5 billion dollars because of Obama-Care. And it has hired another 1,200 agents dedicated to enforcing it. And Obama’s 2011 budget asked for another 5,100 IRS agents.

So when all is said and done, we suspect that the final number will turn out to be a lot closer to the 16,500 figure.

This article was posted by Steve Gilbert on Friday, April 4th, 2014. Comments are currently closed.

4 Responses to “IRS Wants More Money, Agents To Enforce O-Care”

  1. I keep posing this question everywhere I see articles stating “ObamaCare is failing ..”

    Did anyone tell the IRS?

  2. canary

    The IRS already hired near 4000 more workers when the Obama Care bill first passed. Go, figure.

    • canary

      My correction

      According to Reuters In 2009 the IRS hired approx 2 thousand agents for a new “Wealth Unit” to find off shore banks accounts.

      Many news accounts in Oct 2010 IRS hired 2,700 workers for “upgrading its computer systems”

      That’s how I came up with approx 4000 agents, but they were’n’t for health care, they were spying on conservative
      non-profits.

      The Treasury inspector general for tax administration said in a report three weeks ago. The report, however, concluded that “appropriate plans had been developed to implement tax-related provisions” of the law.

      In 2010, House Ways and Means Committee Republicans issued a report saying the IRS

      “may need as many as “16,500 additional auditors, agents and other employees””.

      It appears the IRS priority was to spy on conservative organizations and their members, and are now such as with the Mozilla CEO exposing large companies who donated to programs that were against same-sex marraige.

      I can see the priority of this new annoucnement of needing new agents to continue these target practices, because it serves the Democrat party a lot more than those that can’t afford health care and most likely can’t afford to contribute to a campaign. The Democrats will keep lying that ObamaCare is a winner with most likely no one reporting it was a failure.

      And which agency is now checking the phone calls of all their give away phones to see how much they were used?

  3. Enthalpy

    This is a great time and wonderful opportunity to initiate a flat tax. We’ve been sufficiently betrayed by the IRS.


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