IRS’s compliance with employer shared responsibility provision needs improvement, TIGTA says

The IRS failed to identify a substantial number of employers that were potentially liable for the Employer Shared Responsibility Payments, according to a report by the Treasury Inspector General for Tax Administration (TIGTA).
The Patient Protection and Affordable Care Act’s (ACA’s) Employer Shared Responsibility Provision requires employers with an average of 50 or more full-time employees, including full-time equivalent employees, offer health insurance coverage to full-time employees and their dependents beginning in January 2015. Moreover, additional improvements were required to ensure that paper ACA information returns were accurately processed, TIGTA found.
Also, a Service-wide strategy was required to reduce resources expended on maintaining multiple Taxpayer Identification Number (TIN) validation processes. Seven stand-alone systems and 28 different programs performed validation processes; however, for the 15 systems and programs for which maintenance costs could be provided, the IRS indicated that it spent a total of $2.8 million in Fiscal Year (FY) 2016.
TIGTA made five recommendations, including ensuring that the data used to identify employers are complete and accurate and developing a Service-wide TIN validation strategy to reduce and streamline validation efforts. The IRS agreed with all the recommendations.

SOURCE: TIGTA Report: Affordable Care Act: Processes to Identify Employers Subject to the Employer Shared Responsibility Payment Need Improvement (Reference Number: 2018-43-022)
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