Affordable Care Act: Processes to Identify Employers Subject to the Employer Shared Responsibility Payment Need Improvement
Highlights
Final Report issued on
Highlights of Reference Number: 2018-43-022 to the Internal Revenue Service Deputy Commissioner for Services and Enforcement.
IMPACT ON TAXPAYERS
The Affordable Care Act's Employer Shared Responsibility Provision requires employers with an average of 50 or more full-time employees (including full-time equivalent employees) to offer health insurance coverage to full-time employees and their dependents beginning in
WHY TIGTA DID THE AUDIT
This audit was initiated as part of our coverage of the
WHAT TIGTA FOUND
The Employer Shared Responsibility Provision of the Affordable Care Act became applicable for tax periods after
Employer Shared Responsibility Payment for Tax Year 2015.
Our review of the
In addition, TIGTA found that additional improvements are needed to ensure that paper Affordable Care Act information returns are accurately processed. We identified that unclear form instructions and processing procedures contributed to unprocessable forms and unnecessary correspondence and that procedures for extracting and sorting mail caused unnecessary taxpayer correspondence.
Finally, a Service-wide strategy is needed to reduce resources expended on maintaining multiple Taxpayer Identification Number validation processes. TIGTA's review identified seven stand-alone systems and 28 different programs that perform validation processes. For the 15 systems and programs for which it could provide maintenance costs, the
WHAT TIGTA RECOMMENDED
TIGTA made five recommendations to improve processes to identify employers subject to the Employer Shared Responsibility Payment, including ensuring that the data used to identify employers are complete and accurate and developing a Service-wide Taxpayer Identification Number validation strategy to reduce and streamline validation efforts.
Click here to full report here (https://www.treasury.gov/tigta/auditreports/2018reports/201843022fr.pdf).
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