Obamacare: A Welcome Mat for IRS Horrors

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The Daily Reckoning

So you’ve maneuvered the Obamacare website, plugged in your top-secret information and found out how much you are forced to pay to avoid a fine.

And for some of you, it turns out you qualify for a government subsidy — making the premium sound like a bargain. But signing on that line to accept the government’s cash also means you’re making a deal with the devil.

The government hasn’t told you this subsidy comes with a price — even more intrusion into your everyday life, said Joshua Archambault, a senior fellow with the Foundation for Government Accountability.

“What people don’t know is that their potential for being audited goes up dramatically,” Archambault said. “You have to release twice as much personal information than an applicant for private insurance and, depending on your income, you could actually end up owing upwards of $10,000 or more.”

Archambault has studied Obamacare extensively and his findings can be found on the website his foundation created, UncoverObamaCare.org. In a report co-written with a tax attorney, ObamaCare Tax Credits and the IRS, Archambault said President Obama has asked for $440 million and 2,000 more agents for the Internal Revenue Service, ostensibly to stem an increase in tax-credit fraud.

But many of these new agents presumably will be auditing people if past history is any indicator. A 2012 congressional report by the IRS’ taxpayer advocate revealed that 69% of the people who claimed tax credits for an adoption were audited. Of those taxpayers, 55% were found innocent of wrongdoing and were even owed money, the report said.

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