Tuesday, September 11, 2012
The House Ways & Means Committee held a hearing this morning on The IRS's Implementation and Administration of Democrats' Health Care Law:
[T]he Democrats’ health care law contains 47 tax or tax-related provisions, some of which are already in effect and others that will become effective over the next 18 months. These provisions include, the individual mandate and employer mandate taxes, restrictions on the use of Flexible Spending Arrangements and Health Savings Accounts, a new 3.8% tax on investment income, newly-mandated information reporting on health insurance coverage, new taxes on medical devices, a new Medicare payroll tax, the health insurance premium subsidy, and new requirements for tax-exempt hospitals and group health insurance plans.
The IRS is charged with implementing and administering these new provisions on top of its existing duties under the Internal Revenue Code, which include collecting $2.4 trillion in taxes, processing 145 million individual tax returns, issuing $345 billion in tax refunds, and administering numerous non-revenue provisions such as the Earned Income Tax Credit and various green energy subsidies.
Along with its review of the IRS’s new duties, the Subcommittee will consider: (1) how the IRS’s new duties under the health care law will affect both taxpayers and the IRS’s core revenue-collection function; (2) the IRS’s progress in implementing various provisions of the health care law, both those that are already in effect and those that are not yet in place; and (3) how the agency will coordinate with other federal departments, state governments, and stakeholders to implement the new tax provisions.
Panel #1: Steven T. Miller (Deputy Commissioner for Services and Enforcement, IRS)
Press and blogosphere coverage:
- Bloomberg, Health Law Means IRS Quagmire, Former Commissioner Says
- The Hill, GOP: 80 Million Hours Will be Lost to HealthCare Tax Filing Requirements
- Washington Times, IRS: We'll be Ready for Health Care Law