Obamacare Could Be Stricken with Fraud Unless IRS Acts


On Wednesday, a new critique of the Affordable Care Act entered the fray. An audit by the Treasury Inspector General for Tax Administration said that under current conditions, the Internal Revenue Service’s Internal Revenue Manuals “do not address management’s responsibility for managing, monitoring, and mitigating fraud risk with the development of new information technology systems for the ACA.”

The manuals are a compilation of tax code procedures and guidelines, and so far, “the ACA Program has not yet completed a fraud mitigation strategy to guide ongoing systems development.” The Treasury Inspector General classifies this as a vital component for protecting against improper payments, as “Robust fraud mitigation controls and new systems are required to reduce improper and erroneous payments and fraud risk.”

The report says that the IRS has agreed to develop strategies for fraud mitigation and will create or update “appropriate IRM sections.” The IRS acting commissioner, Danny Werfel, added to this in a statement published by Politico: “The IRS has a strong, effective system in place for administering the Premium Tax Credit. We have a proven track record of safely and securely transmitting federal tax information, and we have a robust and secure process in place to deliver this important credit for taxpayers.”