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The IRS will hire 16,500 new agents to enforce health care

Original post made by jimf01, another community, on Apr 7, 2010

The new Health Care reform legislation, just voted in by the Democrats in Congress and signed by President Barack Obama, was said by House Republicans to include provisions for hiring up to 16,500 new agents for enforcement activities.
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We do know that the legislation includes a new section 5000A to the IRC Subsection(a) of section 5000A would require that practically every American taxpayer obtain health insurance that qualifies as "minimum essential coverage."

This Business Week article gives strong clues to how this will work: Web Link

This article says that the IRS states they have not determined how many additional agents they would have to hire, so it is not a yes, but it is also not a no.

The article also says that "the agency will rely on insurance companies to provide information that individuals are buying coverage as required by the new health-care overhaul"

This means that like your W2, bank account interest 1099 and mortgage interest 1098, your health insurance payments will become additional paperwork you will need, adding more work (or cost) to getting your tax return completed.

And don't forget that little form, because just like a 1099, if you miss something, the IRS has already been notified by your insurance co what you have paid.

Or if they don't get notified, what you HAVE NOT paid.

That means the IRS computer will automatically flag you as a taxpayer who didn't pay for health insurance. Then they have you. If you do not clear this up to the satisfaction of the IRS, it starts with a letter, but they have the power to keep your refund or come and knock on your door to discuss your failure to file and or pay your tax.

That is why the IRS can say, truthfully, that "The health-care overhaul doesn’t have criminal sanctions for non-compliance." Because they do not need it. You are now in IRS regulation area, and they have plenty of existing regulation and authority to come after you for failure to pay or file your tax return.

In Massachusetts, which passed a similar health care bill in 2006. To enforce the individual mandate, the MA Department of Revenue asks what kind of insurance you have, as well as details like whether their "sincerely held religious beliefs" are moving them to petition for an exemption from the requirement.

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Comments (2)

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Posted by dublinmike
a resident of Dublin
on Apr 11, 2010 at 10:04 pm

dublinmike is a registered user.

jimf01, I would like to give you some credibility for your comments but when you site a Republican hit piece published with the pretentiousness of the Ways & Means as cover then I wonder more about you than the message.

Where did they come up with "16,500 new agents"?

From FactCheck:
Q: Will the IRS hire 16,500 new agents to enforce the health care law?

A: No. The law requires the IRS mostly to hand out tax credits, not collect penalties. The claim of 16,500 new agents stems from a partisan analysis based on guesswork and false assumptions, and compounded by outright misrepresentation.

Like this comment
Posted by jimf01
a resident of another community
on Apr 12, 2010 at 11:10 am

jimf01 is a registered user.

Thanks Mike for your desire to give me a tiny bit of credit. The reason I posted this entire thing is because that 16,500 number IS a partisan analysis.
But the refutation appears to be a partisan analysis in light of the comments from the IRS commissioner. Read the businessweek article or view this video with the full speech from Shulman. He says basically what I wrote there.
Web Link

the IRS (Shulman) states they have not determined how many additional agents they would have to hire, so it (the 16,500 number) is not a yes, but it is also not a no. (Sorry for not making that clearer the first time through)

factcheck states straight out that it is not going to happen, that is not yet determined according to what the IRS is saying right now.

quibbling over the specific number aside, the bigger point is that the IRS will have you for failure to file or failure to pay if you don't get health insurance.

Sorry, but further commenting on this topic has been closed.

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