5 ACA and ‘unreal audit’ highlights, for insurance agents and brokers

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The “distinction between ‘real’ and ‘unreal’ audits has real-world consequences that impact taxpayer rights, including the right to challenge the IRS’s position and be heard.” (Photo: Shutterstock)

Consumers seem to have fewer problems with Affordable Care Act tax rules these days, but consumers who do have ACA tax problems may end up drifting through procedural fog.

Nina Olson, the country’s national taxpayer advocate, talks about what she sees as Internal Revenue Service abuse of “unreal audits,” or audit-like examinations conducted outside of the formal IRS audit framework, in a new annual report she prepared for Congress.

The “distinction between ‘real’ and ‘unreal’ audits has real-world consequences that impact taxpayer rights, including the right to challenge the IRS’s position and be heard, the right to appeal an IRS decision in an independent forum, the right to finality, and the right to a fair and just tax system,” Olson writes in the report.

The IRS strategic plan calls for increased use of unreal audits, Olson writes.

“It is therefore crucial for the IRS to reevaluate and revise its current guidance about what constitutes an audit,…

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