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STRATEGIC TAX LAWYERS:  TAX BLOG

Keeping Compliant with the IRS

Tuesday, November 3, 2015
The IRS is currently working on developing an electronic data repository for the Affordable Care Act (ACA) data which will be the centralized data resource for all tax-related ACA and healthcare services.  The governing body of the IRS, known as the Treasury Inspector General for Tax Administration (TIGTA) test then new electronic data platform before its completion.  Only three states have submitted data since November 2014.  After TIGTA’s audit, the IRS did receive more data; however, there was still data missing as of January 20, 2015, which is the beginning of the new filing season.

TIGTA’s role was to determine if there were any risks within the new electronic data repository and if the issues were being addressed. Also, TIGTA wanted to determine if there were business and information technology requirements that were also being addressed.  TIGTA’s audit assessed the testing processes of the platform, which included different security and functional testing controls.

The audit found that the data platform testing was not completed and there were missing data from State and Federal levels. Not all testing was completed. There were times that developers were not demonstrating electronic data platform functionality nor did they completely maintain records to verifying the participation of businesses.  In addition, the electronic data platform still had security risks.   The IRS needs to follow protocol and procedure to eliminate any risks for unauthorized access or hackers (identity thieves) to taxpayers' records.  The priority is for the IRS to ensure that all its online technology projects can perform what they are meant to perform in a way that protects taxpayer.

TIGTA made recommendations to make sure that the IRS will complete all testing before starting interagency testing.  They will also need to ensure that the data platform is functional for ACA business matters. The IRS agreed to comply with all matters that TIGTA brought up regarding the Affordable Care Act and the new tax law regulations associated with the new health care law.

The Strategic Tax Lawyers, LLP are a tax law firm in Los Angeles made up of Payroll Tax Lawyers, IRS Leniency Program Lawyers, and IRS Fresh Start Lawyers. We, at the Strategic Tax Lawyers Firm, are experts in the IRS tax code with years of experience dealing with estate taxes and other tax-related matters.  Call the Strategic Tax Lawyers at (800) 669-4775 for a free consultation to assist you with your case.