White House Seeks to Limit Health Law’s Tax Troubles (New York Times)

February 4, 2015

The Health Care laws will have an effect on people's taxes for the first time this filing season. The New York Times wrote an article covering the White House's efforts to limit the tax problems that may arise.

Obama administration officials and other supporters of the Affordable Care Act say they worry that the tax-filing season will generate new anger as uninsured consumers learn that they must pay tax penalties and as many people struggle with complex forms needed to justify tax credits they received in 2014 to pay for health insurance.

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“If the advanced premium tax credit amount is too high, the taxpayer could have an unwelcome surprise and owe money,” said Nina E. Olson, the national taxpayer advocate at the Internal Revenue Service.

Many people awarded insurance subsidies for 2014 did not realize that the amount would be reviewed and recalculated at tax time in 2015.

Consumers are sure to have questions, but cannot expect much help from the tax agency, where officials said customer service had been curtailed because of budget cuts.

The 2015 filing season could be the most difficult in decades, officials said. Ms. Olson said new paperwork resulting from the Affordable Care Act would probably exacerbate problems with customer service, which “has reached unacceptably low levels and is getting worse.”

“The I.R.S. is unlikely to answer even half the telephone calls it receives,” she added. “Taxpayers who manage to get through are expected to wait on hold for 30 minutes on average and considerably longer at peak times.”

Read the full article: "White House Seeks to Limit Health Law’s Tax Troubles" (New York Times)