The office of the Treasury Inspector General for Tax Administration (TIGTA) is getting ready to assess the quality of the information the Internal Revenue Service (IRS) is sending the public health exchange system. TIGTA officials say a report on Audit Number 201340335, “Affordable Care Act: Accuracy of the Income and Family Size Verification and Advanced Premium Tax Credit Calculation,” was supposed to come out in May.
The investigators creating that report are looking at the accuracy of the IRS family size information, the IRS income information, and the IRS health premium tax credit eligibility calculations flowing to the U.S. Department of Health and Human Services (HHS). TIGTA hopes to publish a report on the Patient Protection and Affordable Care Act (PPACA) health exchange program federal tax data security in August.
TIGTA listed those initiatives in a report to Congress. They help keep tabs on the IRS. Implementation of PPACA is a major source of concern, because at least 42 PPACA provisions will add to, or change, the tax code, officials say in the TIGTA report.
At least eight PPACA provisions will require the IRS to build new processes, officials say. Any changes to PPACA tax provisions could affect how well the IRS can put out accurate tax forms and instructions and how well it can provide customer service, according to officials.
The IRS needs to embed PPACA predictive analytical fraud models into the tax-filing process to prevent PPACA premium tax credit fraud, officials say. Meanwhile, witnesses at a House Ways and Means hearing on PPACA income verification said providing complete, accurate information — and estimate future income correctly for purposes of getting the advance premium tax credits before the tax year is over — is difficult.