head1

Accurate Accounting.  It's Not Optional... It's ESSENTIAL!

Return to Blog

The IRS & ObamaCare

In my past couple posts, I’ve been sharing the “expansive” nature of the U.S. Tax Code, and most recently, how all this “expansion” was before the Affordable Care Act – “ObamaCare”.  As I’ve said before, in my opinion, the “code” will explode with ObamaCare due to the IRS’s being in charge of managing the program.  Based on an article on WSJ.com dated 05/14/2013Your Next IRS Political Audit:

  1. The IRS Inspector General recently reports: “ObamaCare’s 47 major changes to the revenue code represent the largest set of tax law changes the IRS has had to implement in more than 20 years”.
  2. The IRS has requested funding for close to 2,000 full-time employees for its Affordable Care (“ObamaCare”) office in 2014, whose sole responsibility will be to write and enforce regulations for which they have little if any competence: a. “Are ski-instructors or public school teachers seasonal workers” or b. “Is the work-week 40 or is it 30 hours”.
  3. It will be in charge of dispensing ObamaCare’s insurance subsidies, since technically they’re “transfer payments made prior to filing a tax return”, AND oversee the individual mandate to purchase health insurance (I understand the 2013 tax returns will require information concerning the taxpayer’s insurance carried, the carrier, etc.) as well as the business penalties for not offering “Washington approved” coverage to employees.

In order for the IRS to be able to manage and control this vast endeavor, it and the Dept. of Health & Human Services are in the process of building the largest personal information database the government has ever attempted.  This new “super database” will be combining records from Social Security, IRS, Homeland Security, Justice, Health & Human Services and state governments, centralizing information on your personal identity, income, employment, citizenship, criminal history, medical history and residency, just something to help agents get whatever they need from one location as opposed to having to look through many differnet services.

With the recent reports of the IRS’s trying to “slow down” the process of conservative groups being awarded 501(c)4 status and possibly doing more audits of parties felt to be of a more conservative tone, does anyone think this all might be pointing to a bigger problem in the future?

A positive note is that there have been tax reform talks between the House of Representative’s Ways & Means and the Senate’s Finance Committees concerning the rewriting of the tax code; however, I will be very surprised if a rewriting begins with scrapping the whole thing and starting over fresh.  Brings to mind a situation I had with my perscription eyeglasses.  Over the years, when I’d go in for a check-up, the doc would start at the current perscription and try and tweak it.  My damn glasses got so bad, I could barely see out of them.  That’s when I finally said: “let’s start from the beginning, like I’ve never been here before”.  Got the best perscription I’ve ever had.  Congress should take note.