The Internal Revenue Service is about to publish a regulation that will help it send information from tax returns to the new health insurance exchange system.
The IRS developed the regulation to implement Section 6103(L)(21) of the Internal Revenue Code.
The IRC Section 6103(L)(21) and the new regulation authorize the IRS to give the Patient Protection and Affordable Care Act exchange program information about a taxpayer’s adjusted gross income, Social Security benefits not included in gross income, and basic information that could explain why an individual did not need to file a separate tax return.
The regulation also would let the IRS notify the exchange system when an individual collects health insurance subsidy tax credits in advance, then fails to file a tax return.
The regulation is supposed to appear in the Federal Register on Wednesday.