Accounting Web has an article about the new duties the IRS will have regarding the new health care insurance reform bill:
- Monitoring compliance. Taxpayers will have to provide proof of coverage with their annual federal tax returns. Failure to comply will result in a penalty, payable to the IRS.
- Distributing new government subsidies to low-income individuals through newly created state exchanges.
- Overseeing small business tax credits to help qualifying businesses provide insurance to employees.
- Assessing a tax on insurers that provide insurance benefits that are high-cost, or “Cadillac” plans.
- Enforcing penalties for improper distributions from Health Savings Accounts, which Kaiser says will increase under the new plan.
- Overseeing the demand that not-for-profit hospitals live up to their “charitable missions” by doing a “charitable needs assessment” once every three years.
- Regulating contributions to Flexible Spending Accounts, which Kaiser estimates will be limited.
Is the IRS up to the task?
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