" />
clear
Saturday August 29th, 2015 3:27AM

Audit: 'Obamacare' tax not meeting revenue target

By The Associated Press
WASHINGTON (AP) -- An "Obamacare" tax on medical devices is falling short of its revenue target because thousands of companies aren't paying it, according to a government audit released Tuesday.<br /> <br /> The audit by the Treasury inspector general for tax administration says the IRS needs to do a better job policing the tax. The tax agency, however, doesn't have adequate tools to identify which companies owe it, the audit said.<br /> <br /> The report could add fuel to efforts to repeal the tax, which is opposed by Republicans and many Democrats.<br /> <br /> While the IRS has taken steps to educate companies about the tax, the agency "faces challenges to definitively identify manufacturers subject to the medical device excise tax reporting and payment requirements," said the inspector general, J. Russell George.<br /> <br /> To help pay for President Barack Obama's health law, Congress enacted a 2.3 percent tax on the sale of medical devices used chiefly by doctors and hospitals, such as pacemakers and CT scan machines. Consumer items are exempted, including eyeglasses, contact lenses and hearing aids.<br /> <br /> The tax took effect in January 2013. For the first six months of that year, the IRS estimated it would collect $1.2 billion from the tax. The audit said the IRS collected only $913 million - 24 percent less than the estimate.<br /> <br /> The tax is projected to generate $29 billion over the coming decade, so a 24 percent shortfall - if it were sustained - would be significant.<br /> <br /> Companies subject to the tax are required to file quarterly tax forms with the IRS.<br /> <br /> The IRS estimated it would receive between 9,000 and 15,600 returns for the first two quarters of 2013, the audit said. But the IRS received only 5,107 returns, suggesting that thousands of companies either don't know about the requirements or are simply ignoring them.<br /> <br /> The IRS did not immediately respond to a request for comment. As part of a written response in the audit, the IRS said it conducted extensive outreach to educate medical device companies about the tax. The IRS also said it is working on better ways to identify companies that owe the tax.<br /> <br /> The medical device industry has been lobbying hard to get the tax repealed, and there has been movement in Congress. Both the House and the Senate have passed separate pieces of legislation calling for the tax to be repealed, though the Senate vote was on a nonbinding resolution.
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 7 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 7 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 7 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 7 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 7 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 7 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 7 months ago )
Local/State News
GOP leader regrets talk to white supremacists; party leaders rally around him
House Republican leaders rallied around one of their own, Whip Steve Scalise, on Tuesday after he said he regrets speaking 12 years ago to a white supremacist organization and condemns the views of such groups.
6:08PM ( 7 months ago )
Conviction of Putin foe sets off protest in Moscow
President Vladimir Putin's chief political foe was convicted along with his brother on Tuesday in a fraud case widely seen as a vendetta by the Kremlin, triggering one of Russia's boldest anti-government demonstrations in years.
6:03PM ( 7 months ago )
More Georgians signing up for health insurance
A federal report says more Georgians have selected health insurance plans through a federally facilitated marketplace.
4:16PM ( 7 months ago )
Politics
All of Florida watching Tropical Storm Erika, could hit Monday; state of emergency declared
ST. PETERSBURG, Fla. (AP) — All of Florida is carefully watching Tropical Storm Erika as the disorganized system makes its way over Hispaniola.Forecasters at the National Hurricane Center in Miami sai...
2:55PM ( 12 hours ago )
US consumer spending up moderate 0.3 percent in July, while incomes rise 0.4 percent
WASHINGTON (AP) — US consumer spending up moderate 0.3 percent in July, while incomes rise 0.4 percent.
8:30AM ( 18 hours ago )
Democratic financial woes threaten party-building before presidential election year
MINNEAPOLIS (AP) — The Democratic National Committee barely has more cash than it does IOUs, and it is being outraised month after month by its Republican competitor.Its $24 million debt from the 2012...
6:11PM ( 1 day ago )
Health official: States should post local vaccination info
How many kids are vaccinated at your child's school? Federal health officials think you should be able to easily find out.
By The Associated Press
4:55PM ( 1 day ago )
US stocks end sharply higher; Dow up 369
U.S. stocks are closing sharply higher after China's main stock index logged its biggest gain in eight weeks. A report also showed that the U.S. economy expanded at a much faster pace than previously estimated.
By The Associated Press
4:33PM ( 1 day ago )