Treasury Inspector General for Tax Administration
January 5, 2012
TIGTA - 2012-2
Contact: David Barnes
WASHINGTON -- The Office of Appeals at the Internal Revenue Service (IRS) has taken some initial actions to begin preparing for the new cases that it anticipates will result from the new tax law provisions included in the Affordable Care Act (ACA), according to a report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA).
The ACA was enacted in March 2010 and contains $438 billion in revenue provisions that are in the form of new taxes and fees. At least 42 of its provisions add to or amend the Internal Revenue Code.
The IRS ACA Office determined that the new law’s impact on Appeals would be minimal until after Calendar Year 2013. The Office of Appeals expects that the new law will result in new Appeals cases over the next several years. TIGTA auditors found that the Appeals Office has taken some initial actions to begin preparing for the new health care law, including detailing some Appeals staff to the IRS’s ACA Office and creating an internal website with links to IRS ACA-related training, guidance, and other resources.
“Because of the potential for the ACA to affect most taxpayers, effective planning is critical to ensuring Appeals’ readiness to prepare for this legislation and resolve taxpayer requests in a timely and effective manner,” said J. Russell George, Treasury Inspector General for Tax Administration.
As Appeals moves forward with its planning efforts, TIGTA believes management should develop a more formal approach to its ACA planning activities to ensure they are ready to resolve taxpayer requests of ACA-related issues in a timely and effective manner. This should include outlining the key objectives and tasks that need to be addressed to prepare for the ACA-related impact on Appeals, establishing who should be responsible for conducting these activities, and developing timelines for completing these actions over the next several years.
TIGTA made no recommendations in its report.
Read the report
Note: The difference between the date TIGTA issues an audit report to the Internal Revenue Service and the date TIGTA publicly releases the report is due to TIGTA's internal review process to ensure that public release is in compliance with Federal confidentiality laws.
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