No three letters strike fear in the hearts of Americans that I-R-S. Just before Obamacare was passed, we found out that the IRS would be the plan’s enforcers and up to 16,000 new agents would be hired. At the time Obamacare supporters were called conspiracy theorists and told nothing like that would occur. Now According to the IRS the organization will be taking over the heavy handed enforcement of the new health care legislation.
Under the Individual Mandate Tax (IMT) provision in the bill, the part that forces you to purchase Obamacare whether you want it or not, the progressive Democrats make the IRS the chief enforcer for a new government-run health insurance system.
The IRS would be in charge of verifying that every American taxpayer has obtained acceptable health coverage for every month of the year. If the IRS determines that a taxpayer lacks acceptable insurance for even a single month, then the IRS would impose a new tax on that taxpayer, even auditing the taxpayer and could assess interest and penalties on top of the tax. This is an unprecedented new role for the IRS – one that will inject the federal government even further into the lives of American families.
National Taxpayer Advocate Nina Olson, who operates inside the IRS, highlighted the agency’s new mission in her annual report to Congress last week. Look out below. She notes that the IRS is already “greatly taxed”—pun intended?—”by the additional role it is playing in delivering social benefits and programs to the American public,” like tax credits for first-time homebuyers or purchasing electric cars. Yet with ObamaCare, the agency is now responsible for “the most extensive social benefit program the IRS has been asked to implement in recent history.” And without “sufficient funding” it won’t be able to discharge these new duties.
That wouldn’t be tragic, given that those new duties include audits to determine who has the insurance “as required by law” and collecting penalties from Americans who don’t. Companies that don’t sponsor health plans will also be punished. This crackdown will “involve nearly every division and function of the IRS,” Ms. Olson reports.
….Ms. Olson also exposed a damaging provision that she estimates will hit some 30 million sole proprietorships and subchapter S corporations, two million farms and one million charities and other tax-exempt organizations. Prior to ObamaCare, businesses only had to tell the IRS the value of services they purchase. But starting in 2013 they will also have to report the value of goods they buy from a single vendor that total more than $600 annually—including office supplies and the like.
Democrats snuck in this obligation to narrow the mythical “tax gap” of unreported business income, but Ms. Olson says that the tracking costs for small businesses will be “disproportionate as compared with any resulting improvement in tax compliance.” Job creation, here we come . . . at least for the accountants who will attempt to comply with a vast new 1099 reporting burden.
Meanwhile, the IRS will be inundated with useless information, because without a huge upgrade its information systems won’t be able to manage and track the nanodetails.
In a Monday letter, even Democratic Senators Mark Begich (Alaska), Ben Nelson (Nebraska), Jeanne Shaheen (New Hampshire) and Evan Bayh (Indiana) denounce this new “burden” on small businesses and insist that the IRS use its discretion to find “better ways to structure this reporting requirement.” In other words, they want regulators to fix one problem among many that all four Senators created by voting for ObamaCare.
With the implementation of Obamacare, along with the provisions of new financial reform bill that will allow the government to track almost every financial transaction you make, the Obama administration is forcing an unprecedented intrusion into the privacy of each and every American.