The IRS may have missed several million dollars in taxes and associated fines relating to insurance companies and their handling of the Affordable Care Act or ACA. The ACA establishes an annual fee for all providers who provide insurance under the act in order to fund the system. The IRS is responsible for audits calculating the fee based upon the insurer’s market share of premiums within the geographical regions they are serving.
The assessed fees totalled $8 Billion in 2014, but more than 100 insurers missed the April 15 deadline, and several waited until after the IRS had assessed fees to file. This may have allowed them to avoid paying the fee and resulted in millions of lost tax revenue for the IRS and ACA. It is estimated that an additonal $4.9 Million in penalties alone await the IRS’ collection efforts.
