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IRS HealthcarePosted Thursday, January 19, 2012, at 7:23 AM
When the Internal Revenue Service (IRS) was originally created in 1913 it was a revenue bureau focused on assessment and collection of taxes. After the enactment of Earned Income Tax Credit (EITC) in 1975, the IRS became administrators of social expenditures. With the passage of the Patient Protection and Affordable Care Act (ACA), the IRS is responsible for the implementation of several tax law changes included in the legislation (essentially becoming healthcare enforcers).
ACA includes $428 billion in the form of new taxes and fees (so increasing taxes on individuals and businesses will make healthcare more affordable???). Anyway, in anticipation of the increased complexity of the tax code related to ACA, the IRS has created the ACA office to manage implementation of the new tax laws. In addition, they have appointed an Appeals ACA program manager in anticipation of a surge in appeals related to the assessment of taxes, penalties and interest related to the new ACA tax laws. According to the Treasury Inspector General for Tax Administration (TIGTA) report, the IRS anticipates appeals related to:
So look forward to a new set of computer paragraphs (that's what the CP stands for in the top right hand corner of your IRS notices) related to the new health care law. But remember, according to the IRS, penalties are not to be used as a source of "revenue" and depending upon circumstances (e.g., reasonable cause) can be abated by the IRS. To request abatement of penalties (and occasionally interest) file form 843 claim for refund and request for abatement.
Click here to view the entire TIGTA report.
If you have specific questions about IRS tax problems, you can post those questions here or send an email to email@example.com (all communication regarding tax matters is confidential to the fullest extent of the law). To learn more about tax problems and how to resolve them, visit www.irssurvival.com (if you do not see your specific issue listed or you cannot find an answer to your specific problem, send an email or call 855-IRS-SURVIVAL. IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that, unless specifically indicated otherwise, any tax advise in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any tax-related matter addressed herein.
IRS Circular 230 Notice: To ensure compliance with requirements imposed by the IRS, we inform you that, unless specifically indicated otherwise, any tax advise in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any tax-related matter addressed herein.
Taxes, Liens and Levies, Oh My!!
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Alan is a CPA and a Certified Fraud Examiner (CFE) with the firm Begley, Young, Unterreiner & White, LLC located in Cape Girardeau. He is a member of the American Institute of Certified Public Accountants, the Missouri Society of Certified Public Accountants and the Association of Certified Fraud Examiners. Alan obtained his MBA from Southeast Missouri State University, and is also a Certified QuickBooks ProAdvisor who provides support to clients on the use of QuickBooks. Alan's firm works with a variety of small businesses and not-for-profit organizations providing accounting and payroll services, compilations, reviews and audits, estate and tax planning and tax preparation. Alan can be reached at 334-2845 (office) and 275-9055 (cell) or you can email him at firstname.lastname@example.org.