IRS Data Public for Heathcare Benefits Determination?

[Anonymous]

I didn't believe this when I saw it on Facebook.

http://www.cbsnews.com/blogs/2009/08/26/taking_liberties/entry5268079.shtml

Section 431(a) of the bill says that the IRS must divulge taxpayer identity information, including the filing status, the modified adjusted gross income, the number of dependents, and "other information as is prescribed by" regulation. That information will be provided to the new Health Choices Commissioner and state health programs and used to determine who qualifies for "affordability credits."

Section 245(b)(2)(A) says the IRS must divulge tax return details -- there's no specified limit on what's available or unavailable -- to the Health Choices Commissioner. The purpose, again, is to verify "affordability credits."

Section 1801(a) says that the Social Security Administration can obtain tax return data on anyone who may be eligible for a "low-income prescription drug subsidy" but has not applied for it.

Are there any subject matter experts out there? Can the IRS be required to do this? Legally? What about privacy? This floored me.

[Anonymous]

Question: How exactly would you verify eligibility for government assistance for health care funding if not by looking at a person's tax return?

For the first two parts of the bill, the data is to be used for those applying for affordability credits. The bill is explicit in that.

For the third part, the SSA is to first determine from other data who might be eligible for the low-income prescription drug benefit and then they may request more info from the IRS.

BTW, the language used in the health care bill is also in the Medicare Part D bill. (And I would guess in other legislation that is income dependent - say Medicaid or college grants).

[Anonymous]

Oh and the bill contains provisions that say that the information requested is to be used ONLY for determining eligibility.

[Anonymous]

Anonymous wrote:Oh and the bill contains provisions that say that the information requested is to be used ONLY for determining eligibility.

I'm sure that makes Joe the Plumber feel better.

[Anonymous]

When I applied for Student loans and govt. grants, I gave up my tax return. The difference is now the IRS will give up my tax return, whether I want it or not as in the "eligible for prescription drug program but didn't apply for it."

I agree tax returns are a good way to verify and check fraud, but I disagree in the IRS and this Commissioner just exchanging information behind my back. What if I didn't WANT the govt. assistance?

[Anonymous]

Again, if you don't apply for the credit, they won't have the right to look at your tax information:

SEC. 245. INCOME DETERMINATIONS.

(a) In General- In applying this subtitle for an affordability credit for an individual for a plan year, the individual's income shall be the income (as defined in section 242(c)) for the individual for the most recent taxable year (as determined in accordance with rules of the Commissioner). The Federal poverty level applied shall be such level in effect as of the date of the application.

(b) Program Integrity; Income Verification Procedures-

(1) PROGRAM INTEGRITY- The Commissioner shall take such steps as may be appropriate to ensure the accuracy of determinations and redeterminations under this subtitle.

(2) INCOME VERIFICATION-

(A) IN GENERAL- Upon an initial application of an individual for an affordability credit under this subtitle (or in applying section 242(b)) or upon an application for a change in the affordability credit based upon a significant change in family income described in subparagraph (A)--

(i) the Commissioner shall request from the Secretary of the Treasury the disclosure to the Commissioner of such information as may be permitted to verify the information contained in such application; and

(ii) the Commissioner shall use the information so disclosed to verify such information.

...

SEC. 431. DISCLOSURES TO CARRY OUT HEALTH INSURANCE EXCHANGE SUBSIDIES.

(a) In General- Subsection (l) of section 6103 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

`(21) DISCLOSURE OF RETURN INFORMATION TO CARRY OUT HEALTH INSURANCE EXCHANGE SUBSIDIES-

`(A) IN GENERAL- The Secretary, upon written request from the Health Choices Commissioner or the head of a State-based health insurance exchange approved for operation under section 208 of the America's Affordable Health Choices Act of 2009, shall disclose to officers and employees of the Health Choices Administration or such State-based health insurance exchange, as the case may be, return information of any taxpayer whose income is relevant in determining any affordability credit described in subtitle C of title II of the America's Affordable Health Choices Act of 2009. Such return information shall be limited to--

`(i) taxpayer identity information with respect to such taxpayer,

`(ii) the filing status of such taxpayer,

`(iii) the modified adjusted gross income of such taxpayer (as defined in section 59B(e)(5)),

`(iv) the number of dependents of the taxpayer,

`(v) such other information as is prescribed by the Secretary by regulation as might indicate whether the taxpayer is eligible for such affordability credits (and the amount thereof), and

`(vi) the taxable year with respect to which the preceding information relates or, if applicable, the fact that such information is not available.

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Nowhere does it give the IRS power to provide tax information for any and everyone.

[Anonymous]

You give that stuff up when you apply for a mortgage. Why not for getting a special credit from the government?

[Anonymous]

This is the way the government is moving in order to confirm that recipients of social programs are eligible -- more sharing of data between agencies.