IRS Mandatory Health Insurance Enforcer in 2014 By Tara Lynn Thompson It sounds like a poor superhero villain name, the IRS Mandatory Health Insurance Enforcer. In 2014, they won’t be wearing capes, at least no one’s mentioned it, but they will be enforcing the mandatory requirement for all Americans to purchase health insurance or else, the “or else” being a fine. Under ObamaCare, Americans whom the government deems can afford insurance will be required to purchase it. And if not, will be fined up to $695 or 2.5% of their income, with more than 4 million Americans facing fines up to $1,000 by 2016, according to a new report by the Congressional Budget Office. The cost of health insurance premiums won’t be dropping anytime soon, anytime soon being 2020ish. Economic experts at the Health and Human Services Department found that ObamaCare will not control runaway health care costs, while simultaneously pushing approximately 15% of hospitals in the red with “unrealistic and unsustainable” Medicare cuts, USAToday reported. The mandatory health insurance fines, however, start far sooner. Enter the IRS stage right. At this point in the blind groping in the dark through the gargantuan health care bill, IRS can not impose liens, levies, seize property or seek jail time if you do not purchase health care insurance. What they can do is withhold your tax return, which is money they took that they shouldn’t have, and bug the snot out of you. Failure? It’s sounding more and more like a government program everyday. The IRS will send out a letter explaining the penalties owed by those who do not have health insurance coverage. If it isn’t paid, they will remove the penalties from tax rebate money. If the taxpayer doesn’t receive a tax rebate, the IRS has ten years to collect the penalties. Who might cause a collection problem? Except the wealthy people are the ones tasked with paying for Obamacare. And then there’s a new hidden gem the Cato Institute found today buried within the sweaty folds of the health care bill. Inside a health care bill, oddly enough, the government has established a new tax code. Surprise. The tax code requires any business or self-employed person who pays $600 or more to anyone to file a new 1099 form to the IRS. You won’t need to be worried about ending up six feet underground, the IRS paperwork will take care of burying you. More IRS involvement means more IRS workload which means a bigger IRS. The CBO estimates the IRS will need an additional $5 to $10 billion in funding to administer the health care law and that doesn’t take into consideration the primary job of the IRS. Can they handle it? According to a report by the IRS’ national taxpayer advocate, only 64% of taxpayers who called the IRS last year reached a representative. More tax-avoidance schemes are expected to move through the gaps, said Sen. Charles Grassley. The IRS outdated computer and data-storage system will be strained. And areas where the IRS’ management needs improvement, like the $10 to $12 billion in erroneous Earned Income Tax Credits the IRS paid in 2006 (the last year with available numbers), won’t be getting streamlined anytime soon. But despite the coming problems, you can count on the IRS Mandatory Health Insurance Enforcer in 2014 coming to the rescue.
Posted on: Fri, 09 Jan 2015 18:56:18 +0000
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