Wednesday, July 14, 2010

Internal Revenue Service Tells Congress It Does Not Have Sufficient Funding & Resources to Handle Obamacare

I seem to recall Republicans saying that the IRS would need to hire 16,500 new agents to enforce Obamacare. The Democrats disagreed and said the IRS did not need to hire 16,500 new agents. The IRS has weighed in and while it is not asking for 16,500 agents, the IRS does say that it does not have funding and resources to effectively enforce the health care mandates (as is stated in the National Taxpayer Advocate Mid-Year Report to Congress)

Second, with respect to the IRS’s ability to deliver social programs, the report expresses concern that the IRS currently is neither structured nor funded to do the job effectively. “I have no doubt the IRS is capable of administering social programs, including health care,” Ms. Olson said. “But Congress must provide sufficient funding and the IRS itself must recognize that the skills and training required to administer social benefit programs are very different from the skills and training that employees of an enforcement agency typically possess. While some enforcement measures are required to prevent inappropriate claims, the overriding objective of agencies that administer social benefit programs is to help as many eligible persons qualify for the benefits as possible. That requires outreach and working one-on-one with potentially eligible individuals. If the IRS continues to ramp up enforcement while reducing taxpayer service programs, I would be concerned about its ability to administer the new health care credits and penalty taxes in a fair and compassionate way.”


Source: IRS


No comments: