IRS Police Force For Health Care Reform

It looks like the IRS will be in-charge of policing the health care reform, when the legislation is past.  By 2013 individuals will have to prove they have health insurance or face a tax penalty.    The IRS needs to set up a matching program between all health insurers and all taxpayers to insure compliance.  Filers that do not have health insurance will pay a penalty when filing their tax return.
The state-run health insurance exchanges, which is scheduled to provide health insurance for the low incomers will need to set up another system with the IRS to validate income requirements and exchange tax credits for the purchase of health insurance.
The IRS will also be collecting fees (penalties) for mid size - large companies that do not provide health insurance to its workers.
There will be a new excise tax on high level health insurance plans.  Again the IRS is responsible for collecting and policing this new tax.
Finally the IRS needs to manage and enforce compliance on small businesses for tax credits claimed for providing health insurance to its employees.

If you think you have difficulties now in resolving an issue with the IRS, wait until they are in charge of policing the largest social welfare program in the history of the US.

 

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