Wednesday, June 20, 2012
The Treasury Inspector General for Tax Administration today released Affordable Care Act: Planning Efforts for the Tax Provisions of the Patient Protection and Affordable Care Act Appear Adequate; However, the Resource Estimation Process Needs Improvement (2012-43-064):
The Patient Protection and Affordable Care Act of 2010 and the Health Care and Education Reconciliation Act of 2012 (collectively referred to as the ACA) were both signed into law in March 2010 and together contain over 500 provisions. Over 40 of these provisions added to or amended the Internal Revenue Code, and provide incentives and tax breaks to individuals and small businesses to offset health care expenses. They also impose penalties, administered through the tax code, for individuals and businesses that do not obtain health care coverage for themselves or their employees. The IRS’s role is to implement and administer the various tax provisions included in the ACA -- a major challenge as the ACA is the largest set of tax law changes in more than 20 years and affects millions of taxpayers.
TIGTA conducted this audit because the IRS is responsible for overseeing a significant part of the legislation that includes, but is not limited to, administration of additional taxes, penalties, and fees on individuals and employers; determinations of various exemptions from those taxes; and oversight of new information reporting requirements. The new taxes, fees, and penalties account for approximately $438 billion. TIGTA’s overall objective was to assess the IRS’s overall planning to implement the tax provisions of ACA. ...
The IRS projected its Fiscal Years 2012 and 2013 ACA staffing needs to be 1,278 Full-Time Equivalents and 859 Full-Time Equivalents, respectively. The IRS has not projected staffing needs beyond Fiscal Year 2013. The lack of documentation to support the staffing requirements needed to implement the ACA precluded TIGTA from providing an opinion on the adequacy of staffing requests to support implementation. The IRS did not analyze each provision to determine the amount of staffing necessary to implement the provision.