In a fashion all too familiar for the IRS, the nation’s tax collector overpaid more than $8 million to HealthCare.gov customers and Obamacare clients in California while shortchanging thousands of others out of nearly $2 million in 2015.
The good news — that IRS calculated the right amounts in most cases — is cold comfort to the 69,400 taxpayers who didn’t get what they were owed, according to a report by the Treasury’s inspector general for tax administration. They can refile.
And the winners in Obamacare’s subsidy sweepstakes? They can keep their windfall to “mitigate any harm to tax filers” — during a presidential election year, of course, according to The Washington Times.
The 2015 screw-up is tied to an incorrect form — the problematic 1095-A — which the government sent to an estimated 800,000 customers. The botched forms applied the wrong benchmark to calculate what recipients’ Obamacare payments should have been.
But this is no exception. Last year two-thirds of H&R Block filers who received subsidies from Obamacare reportedly were overpaid and owed money to the IRS – on average, $729, The Times reported.
Such is the sorry status quo for the watchdog of government’s newly minted health care boondoggle. And it’s unacceptable.
The above editorial appeared in The Pittsburgh Tribune-Review.