Date Issued
Report Number
2017-43-022
Report Type
Audit
Special Emphasis
Affordable Care Act (ACA)
Joint Report
Yes
Participating OIG
Treasury Inspector General for Tax Administration
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$128,653,837
Recommendations
The Commissioner, Wage and Investment Division, should continue to work with the Centers for Medicare and Medicaid Services (CMS) to ensure that the Federal Exchange and all State Exchanges submit required Exchange Periodic Data (EPD) and Form 1095-A data to the IRS by the established due dates.
The Commissioner, Wage and Investment Division, should revise systemic Premium Tax Credit (PTC) verification processes to include Form 1095-A data.
Recommendation rejected by IRS
The Commissioner, Wage and Investment Division, should establish processes to correspond with all taxpayers who file a tax return claiming the PTC for which the IRS has no EPD and Form 1095-A, Health Insurance Marketplace Statement, data regardless of the dollar amount of the claim.
Recommendation rejected by IRS
The Commissioner, Wage and Investment Division, should update verification processes to identify taxpayers who receive the APTC and submit a blank Form 8962, Premium Tax Credit (PTC), for additional review.
The Chief Technology Officer, in conjunction with the Director, Affordable Care Act Office, should ensure that programming changes are made to use the most current data available at the time a request is received from an Exchange when determining if a taxpayer has reconciled the Advance Premium Tax Credits (APTC) received in the prior calendar year.
Recommendation rejected by IRS