The ACA Times


  Show menu
  • Home
  • Articles
  • Get to Know the ACA
  • ACA – Frequently Asked Questions
  • Resources
  • Meet the Editors
  • Trusaic
  • Contact Us
  • Legal
  
  • Home
  • Affordable Care Act
  • IRS Shares Success Of Premium Tax Credit Calculations For 2015

Articles

IRS Shares Success Of Premium Tax Credit Calculations For 2015

May 19, 2016 Robert Sheen Affordable Care Act, Tax Filings
IRS Shares Success Of Premium Tax Credit Calculations For 2015

The 2015 tax year was a transitional one in the world of health care as the Affordable Care Act modified several procedures in the way of filing for health care coverage acknowledgment and credits. The premium tax credit being a major one, as most claiming this credit were doing so for the first time ever in 2015.

The IRS’ margin of error could theoretically be great, leaving a window of opportunities for miscalculations and even potential fraud. However, in a report released by the Treasury Inspector General For Tax Administration (TIGTA), the IRS was more precise than you might think.

The premium tax credit was initially designed by the ACA in an effort to lighten the financial burden of lower income individuals and families who would be purchasing health insurance for the first time via the Health Insurance Marketplace. Oftentimes that credit is distributed in advance, leaving room for overpayment. However, the report for the 2015 tax year reflects 93% accuracy on behalf of the IRS with regard to their PTC predicted calculations.

While this is a major milestone for the IRS, a look at the previous tax year would explain their need for accuracy. For the 2014 tax year, a number of calculation and computer errors led to discrepancies in over 15% of the returns. This was due largely in part to the IRS’ failure to factor in data received between 1/20/15 and 3/29/15.

Fraudulent credit claims were also a possible reason for the discrepancies. The TIGTA expressed in their report that an audit of those 15% (around 28,000 of the 183,000 tax returns) should be reinvestigated to resolve such errors. While the IRS is still getting adjusted to ACA mandates like the rest of us, a positive outcome from one tax year to the next reflects a significant adjustment in the IRS’ calculation procedures.

To read the full report, click here.

To learn more about ACA compliance in 2021, click here.


We’re committed to helping companies reduce risk, avoid penalties, and achieve 100% ACA compliance. For questions about the ACA contact us here.

Short URL of this page: https://acatimes.com/vgj
Robert Sheen

Robert Sheen

Esq., is Editor-in-Chief of The ACA Times. He also is founder, president and CEO of Trusaic.

Robert Sheen is Founder and President of Trusaic. Robert is a graduate of the University of Southern California, in Business Administration with an emphasis in International Finance. He earned his Juris Doctor from Loyola Law School, Los Angeles, concentrating in Tax Law.

View more by Robert Sheen

Related tags to article

TIGTA
Related Articles How Employers Can Turn Pay Data Reporting into a Better Business How Employers Can Turn Pay Data Reporting into a Better Business
Related Articles Gap Between ESG Efforts & Expectations Becoming More Apparent Gap Between ESG Efforts & Expectations Becoming More Apparent
Related Articles DEI Update: Nasdaq Seeks to Adopt Board Diversity Rule DEI Update: Nasdaq Seeks to Adopt Board Diversity Rule
Related Articles Is Cybersecurity An Issue When Using The ACV? The TIGTA Weighs In Is Cybersecurity An Issue When Using The ACV? The TIGTA Weighs In by Robert Sheen  •  
Related Articles IRS Confirms Continued Enforcement of ACA Employer Mandate [UPDATE] IRS Confirms Continued Enforcement of ACA Employer Mandate [UPDATE] by Robert Sheen  •  
Related Articles The IRS Storm of Letter 226J ACA Penalty Notices Continues The IRS Storm of Letter 226J ACA Penalty Notices Continues by Joanna Kim-Brunetti  •  
Subscribe

Popular Posts

  • California Individual Mandate Final Regulations Have Been Updated
  • California Individual Mandate Penalties Will be Issued in 2021
  • Biden’s Affordable Care Act Advancements are Underway
  • Five Resources Essential for ACA Compliance in 2021
  • Employers May Face Additional Challenges with 2020 ACA Reporting
  • Most Frequently Asked ACA Questions for Employers and Individuals
  • What Employers Need to Know About the 2020 ACA 1095-C Codes
  • Taxpayers (Including Employers) Have the Right to the Challenge IRS

Trending Topics

  • Regulations
    (91)
  • Legislation
    (47)
  • Editorials
    (19)
  • ACA Compliance
    (126)
  • Tax Filings
    (19)
  • Applicable Large Employer (ALE)
    (13)
  • Penalties
    (18)
  • IRS
    (82)
  • Health Insurance Marketplace
    (28)
  • Polls/Surveys
    (18)
  • Health Care Reform
    (22)
  • Reporting
    (22)
  • IRS 226J/226-J
    (28)

Categories


Brought to you by Trusaic

 

 

 

Twitter Facebook

Downloads

The ACA 101 Toolkit

The Essential Guide to the ACA

Letter 226J Infographic

5 Common ACA Compliance Mistakes

Triangle of Trust

Articles

IRS Affordability Safe Harbors Help Avoid ACA Penalties

Calculating FT and FTE Employees

The ACA Monthly Measurement Method: A Few Examples

The IRS’s 1095 Forms for ACA Explained

Incorrect ITINs Will Cause Havoc With ACA Compliance

Knowledge Center

Get to know the ACA

Get to know Letter 226J

Webinar: The Recipe for Successful ACA Compliance

Trusaic News

Our Story

© 2021 Copyright Trusaic - All Rights reserved.

Close Window

Loading, Please Wait!

This may take a second or two. Loading, Please Wait!