Last year I wrote an article regarding Advanced Premium Tax Credits [APTC]. Now, the Internal Revenue Service is requesting a $2 billion boost to its budget and 9,000 new employees as it prepares to enforce Obamacare’s tax provisions.
“As the tax law changes, the IRS must implement programs to ensure that taxpayers understand the new laws, and that the IRS can address noncompliance,” the agency’s budget proposal states. The IRS has to increase staff to conduct audits on businesses as well as assist taxpayers calling into the agency with questions.
Meanwhile, consumers who received subsidies available under the Affordable Care Act may have to “reconcile” their tax credits. Those who received a subsidy last year will be forced to return some money, due to any increase in income or misstated income could mean they received more in tax credits than they were entitled to.