Watchdog: IRS PPACA exchange systems worked well

During a TIGTA record review period that started Oct. 1 and ended Oct. 4, the IRS was sending the exchanges accurate answers to requests for income and family size verification (IFSV) information, TIGTA investigators write in their report. The IRS gave the exchanges accurate responses to 99.97 of the 101,018 IFSV requests received during that period, investigators say.

Similarly, during a TIGTA record review period that started Oct. 1 and ended Oct. 14, the IRS handled all 120,824 requests for APTC calculations it received accurately, investigators say. 

TIGTA investigators say the IRS had problems retrieving tax information for 33 people because of a glitch in a database that uses “name control” codes to track people. When individuals changed their last names many times, an IRS system would pull the first five name controls in a file, rather than the five most recent name controls. The IRS is already working to change the programming mistake that led to the error, officials say.

When investigators looked at the performance of the APTC calculator, they found four questionable responses: All were for people with incomes equal to exactly 400 percent of the federal poverty level. At the time, TIGTA investigators say, IRS regulations limited access to the APTC to people who earned “less than 400 percent” of the federal poverty level. Now, investigators say, the IRS is preparing to let people with incomes that are exactly 400 percent of the federal poverty level get the tax credit.

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