Obamacare Tax Revenue Target Falling Short
A government audit has revealed that the “Obamacare” tax on medical devices is coming up short of the revenue target due to the fact that thousands of businesses are not paying the tax.
The audit, which was carried out by the treasure inspector general for tax administration, said, the Internal Revenue Service must start policing the tax. But, the IRS said it doesn’t have the necessary tools to help them know what companies owe the tax.
The audit report could spurn efforts by many Republicans and Democrats to repeat the tax.
The IRS said it has taken steps to teach businesses about the tax, but the agency is having difficulties recognizing the manufacturers who would be subjected to the medical device excise tax reporting and payment requirements.
To fund the Afordable care Act, Congress added a 2.3 percent tax for the sale of medical devices used mainly hospitals and doctors like CT scan machines and pacemakers. Consumer items such as contact lenses, eyeglasses and hearings aid were excluded.
This tax went into effect in January 2013. In the first six months, the IRS said it collected roughly $1.2 billion. The audit revealed the IRS only took in $913 million.
It’s expected that the tax will generate $29 billion over the next 10 years.
Businesses that have to pay the tax need to file with the IRS on a quarterly basis.
The audit said it would get between 9,000 and 15,600 returns in the first quarters of 2013, but the agency only got 5,107. This can lead to the suggestion that companies have no idea they’re required to pay the tax or they’re ignoring the fact they have to pay it.
The agency said the agency will look at the recommendations the audit made, which include revamping tax forms to keep future discrepancies from happening.
Online News Heard Now
Short URL: http://www.onlinenewsheardnow.com/?p=3533
Posted by