A new paper details the "massive expansion of the power and reach of the Internal Revenue Service" as a result of the enactment of the Obamacare law.
Obamacare makes the IRS responsible for the enforcement and administration of 47 of Obamacare's tax provisions.
Early estimates indicate the IRS will add between 5,000 and 13,000 new agents and will spend $1 billion by the end of 2013 on new information technology.
Under Obamacare, the IRS is not empowered to determine eligibility for the various tax credits introduced by the bill. The IRS must share information with the various state "exchanges" to determine if a citizen is subject to a "penalty" or to a tax credit (which may be more than the tax they owe.)
In addition, the IRS is barred from filing tax liens to collect the health care "penalties."
However, the IRS is empowered to seize any local, state or federal tax refund you may be entitled to in order to offset a health care "penalty."
The tax change most likely to affect middle class Americans is an entirely new definition of income that Obamacare requires Americans to calculate.
As you may know, the IRS already requires Americans to report "taxable" income. And millions of taxpayers are required to report a different form of taxable income if they fall under the Alternative Minimum Tax (AMT).
In order to qualify for the Obamacare tax credits necessary to pay for the $20,000 a year family health insurance plan that citizens will be forced to buy from the exchanges, they will now have to report "household" income instead of "taxable" income.
Household income includes the income of all other members of the "household" that live with a taxpayer, which means anyone who qualifies as a dependent under IRS Code section 151. For example, income earned by a resident mother-in-law or grandchild would be added to household income for health care tax purposes.
Changes to this household income must be reported to the health care exchanges. If the IRS finds a discrepancy between what is reported to the exchange and what is reported to the IRS, they can go after taxpayers to repay any excess tax credit.
The IRS will also be required to determine if the private health insurance you buy meets federal standards. They will need mountains of information from private insurers, including the household income reported to the insurance company.
IRS officials will also be inspecting the records of businesses to find out how large they are, since the requirement of "provide insurance or pay a fine" depends on the number of employees.
Right now, there is no mechanism in place for a taxpayer to appeal any discrepancy between what the IRS records and what the taxpayer believes is accurate.
Perhaps the Social Security Administration gave us a preview of the new enforcement mechanism when a purchase order for 174,000 rounds of .357 125 grain bonded jacket hollow point (JHP) bullets was made public last week.
The SSA defended spending part of the Social Security Trust Fund on these deadly bullets by saying its Office of Inspector General does criminal investigations of Social Security fraud and its agents are armed.
The previous What's Happening with Conservatives and the Tea Party: Paul Ryan's Record in Congress
The previous What's Happening with Seniors Benefits: 10 Ways Obamacare Limits Patient Choice
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