TIGTA issues report on IRS’s ACA compliance readiness

In a new report, the Treasury Inspector General for Tax Administration (TIGTA) assessed the IRS’s preparations for compliance with the Minimum Essential Coverage (MEC) and Shared Responsibility Payment (SRP) requirements. TIGTA found that the IRS has not developed processes and procedures to verify taxpayer compliance with MEC and SRP requirements for the 2015 filing season because the Treasury Department delayed employer and insurer reporting of health insurance information until March 2016.

However, the IRS planned on assessing MEC compliance on 2014 tax returns that it identifies through its normal compliance activity. The IRS recognized the complexity of the SRP calculation and developed a tool to assist examiners in calculating the SRP when examining a tax return. TIGTA found that this tool accurately computed the SRP. In addition, the IRS planned to use information obtained during the 2015 filing season to develop post-processing compliance strategies to be used in future years. TIGTA recommended that the IRS add the online SRP calculation tool to the IRS website for the 2016 filing season.

The IRS agreed with this recommendation and planned to assess the feasibility and cost associated with the online SRP estimator tool. (TIGTA Press Release: ACA: TIGTA Issues Report On IRS Readiness To Ensure Compliance With Minimum Essential Coverage And Shared Responsibility Payment Requirements TIGTA Report: Affordable Care Act: Assessment of Internal Revenue Service Preparations to Ensure Compliance With Minimum Essential Coverage and Shared Responsibility Payment Requirements (Reference Number: 2015-43-030).)

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