Thursday, February 17, 2011

Healthcare Reform Law Requires New IRS Army of 1,054

According to the IRS, it will take an additional 1,054 new auditors and staffers to watch over the implementation of health care reform. A full 81 workers will be needed just to make sure the tanning excise tax is levied correctly. Is this efficient?

US News.com reports:

    "The ACA [Affordable Care Act] will require additional resources to build new IT systems; modify existing tax processing systems; provide taxpayer outreach and assistance services; make enhancements to notices, collections, and case management systems to address and resolve taxpayer issues timely and accurately; and conduct focused examinations to encourage compliance," said the newly released IRS budget.

    In its request, the IRS explained that the tax changes associated with health reform are huge. "Implementation of the Affordable Care Act of 2010 presents a major challenge to the IRS. ACA represents the largest set of tax law changes in more than 20 years, with more than 40 provisions that amend the tax laws."

    Unsaid: The requests are just the beginning, since the new healthcare program is evolving and won't be fully implemented until about 2014.

    The detailed IRS budget documents spell out exactly what most of the new workforce will be doing. For example, some 81 will be tasked just to handle the tax reporting of 25,000 tanning salons. They face a new 10 percent excise tax on indoor tanning services. Another 76 will be assigned to make sure businesses engaged in making and imported drugs pay their new fee which is expected to deliver $2.8 billion to the Treasury in 2012 and 2013. The new healthcare corps will also require new facilities and computers.

    The document gives the GOP a bright target to hit if they plan to make good on promises to defund the president's healthcare plan.

Read more here

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