The IRS is asking for $62 million to prepare for the Patient Protection and Affordable Care Act in 2012, IRS Commissioner Douglas H. Shulman told the House Appropriations Committee in testimony earlier this month.
Although the law does not fully take affect until 2014, Schulman outlined the phases of the implementation process that would occur in the 2012 fiscal year, which begins on October 1.
Shulman revealed a cost of $62,477,000 to implement the PPACA provision that establishes shared responsibility payments for both individuals and employers.
This initiative will fund the development of the necessary information technology, infrastructure, and systems, along with 65 full-time employees, he said.
"The IRS has significant information technology development work that must be completed in order to administer these provisions,” he said. “The vast majority of the resources that IRS will require between now and 2014 will be dedicated to technology and the associated business process design required to effectively administer these new provisions."
Shulman addressed what the plan means to employers: “The IRS will administer the employer responsibility payment for large employers who do not offer affordable coverage, and have at least one employee who receives subsidized coverage through the exchange. This provision closely intersects with the rest of the exchange provisions, and we are working closely with the Department of Health and Human Services and the Department of Labor to reach out to the employer community; understand what questions and issues they foresee; and incorporate the feedback that we get into the upfront program design and regulatory guidance.”
