OK…quick quiz::

Who will be the most important agency in Obamacare?

  • State Division of Insurance
  • Health and Human Services
  • Internal Revenue
  • State or Federal Exchanges

Did you pick the IRS? If you did you are right!

Next question::

How many tax provisions are there in Obamacare for the IRS to enforce?

  • 10
  • 21
  • 32
  • 47

Seriously….there are 47 provisions that have been included in the tax code and reform regulations that will be enforced by the IRS.

One of the key provisions is collection of penalties (not called “taxes”) for people not enrolled in a qualified health plan.

The IRS will also be the lead agency in determining who receives a Premium Tax Credit (subsidy) and how much someone is eligible for —- this will included recovering overpaid subsidies from people at the end of a tax filing year in a process called “true up.”

I’m not certain I would call this a silver lining, but in all of this, the IRS has no authority to assess either criminal or civil penalties on any entity that does not pay the penalty/tax. It cannot reach into bank accounts or lien wages. Interest does not accumulate for unpaid penalties/taxes related to Obamacare.The law does allow the IRS to withhold tax refunds to collect the penalty but this would only occur if someone has overpaid taxes.