Brown, PC
Main Menu
Schedule Your Initial Consultation:
View Our Practice Areas

The IRS and Obamacare: TIGTA audit urges fraud prevention steps

One of the threads we are following in this blog is the role Congress has tasked the IRS to play in the implementation of the Affordable Care Act (ACA).

This role includes much more than imposing (fairly light) tax penalties on people who do not comply with the so-called "individual mandate" to buy health insurance. After all, the IRS is also responsible for calculating tax subsidies based on income that are supposed to help people buy health insurance.

In this post, we will discuss concerns that the IRS's systems for detecting fraud need to be improved in order for this whole process to work as intended.

Two weeks ago, the Treasury Inspector General for Tax Administration (TIGTA) released an audit of the systems that the IRS will use to calculate ACA subsidies.

The audit found that the IRS may lack sufficient fraud detection capacity to prevent possible tax refund fraud or other fraudulent schemes related to the ACA.

In response, the IRS’s chief technology officer contended that improvements had already been made in the agency’s data-security systems since the audit was concluded. He acknowledged, however, that more needs to be done to prevent tax refund fraud.

The subsidies for purchasing insurance under the ACA will be issued in the form of a tax credit. Given the amount of tax refund fraud that has occurred in recent years, it is only natural that TIGTA would be calling attention to what the IRS needs to do in order to avoid excessive instances of ACA subsidy fraud.

Source: Bloomberg, "IRS Needs Changes to Avoid Health Law Fraud, Audit Says," 

No Comments

Leave a comment
Comment Information
Print this Page
Email Us For A Response
Set Up An Initial Consultation Now: 888-870-0025

Work Directly With Us

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy