New Regulations Specify Return Information IRS Can Release to Determine Taxpayer Eligibility For Health Care Benefits
The IRS has issued proposed regulations expanding the type of return information it can provide to the Department of Health and Human Services (HHS) and to health care exchanges for determining a taxpayer's eligibility for health plan benefits, including the premium tax credit and cost-sharing reductions. Eligibility is based in part on household income. The regulations identify items of return information that can be disclosed in addition to the items specified in the statute. The Health Care Act provisions explicitly authorize the disclosure of the following return information: taxpayer identity information, filing status, the number of the dependents, and modified adjusted gross income (MAGI).
Additional Return Information to be Released
The proposed regulations allow the IRS to also disclose why particular items of return information are not available. In addition, where an individual jointly filed with a spouse who is not included on the health care application, the IRS will not disclose MAGI from the joint return because it cannot be appropriately allocated between the two spouses. Instead, the IRS will disclose that a joint return had been filed. Additionally, the IRS may release information relating to possible identify theft of a taxpayer or information that a taxpayer has been reported as deceased. For dependents, the IRS will provide information on whether the dependent listed on the health insurance application had a filing requirement. Finally, the IRS will disclose to HHS the names of any taxpayers who received an advance payment of a premium tax credit but did not file a return reconciling the advance payments with any premium tax credit available.
Comments on the regulations are due by July 30, 2012.
Click here for a copy of REG-119632-11 »