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May 06, 2016 at 01:33 PM
The Internal Revenue Service (IRS) seems to have had problems calculating the allowable premium tax credit for about 7 percent of the taxpayers who used the credit in 2014 — and then reported it on their tax returns for that year.
Officials at the office of the Treasury Inspector General for Tax Administration (TIGTA), a watchdog agency that keeps tabs on the IRS, reported that finding in a recently released report.
The U.S. Department of Health and Human Services (HHS) paid $15.5 billion in Patient Protection and Affordable Care Act (PPACA) advance premium tax credit subsidies to health insurers in calendar year 2014 on behalf of 11 million PPACA exchange plan enrollees.
As of mid-2015, individual taxpayers had reported $9.8 billion of the premium tax credits on their individual tax returns, according to a TIGTA report released in March.
See also: More than 5% of early tax filers owed PPACA penalties
In the new report, TIGTA officials looked at IRS efforts to reconcile the information on individual’s returns, data from PPACA exchange program administrators, and other sources.
