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1000s Of Firms Aren't Paying An "Obamacare Tax", IRS Audit Finds 24% Shortfall
It appears Sen. Orin Hatch's comment that "everything from this ill-conceived tax's structure to its implementation has been a disaster," are coming true. As AP reports, 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. An audit found the IRS received only 5,107 returns (against expectations of over 9,000) with a 24% shortfall in revenues. The tax is projected to generate $29 billion over the coming decade, so a 24 percent shortfall - if it were sustained - would be significant.
As AP reports, 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.
The tax...
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.
The tax took effect in January 2013.
Is not being paid...
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.
The audit by the Treasury inspector general for tax administration says the IRS needs to do a better job policing the tax.
But the IRS can't tell who is not paying!!
The tax agency, however, doesn't have adequate tools to identify which companies owe it, the audit said.
...
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.
A 24% shortfall...
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.
The tax is projected to generate $29 billion over the coming decade, so a 24 percent shortfall — if it were sustained — would be significant.
Companies subject to the tax are required to file quarterly tax forms with the IRS.
It appears Orrin Hatch was right...
"Everything from this ill-conceived tax's structure to its implementation has been a disaster," said Sen. Orrin Hatch of Utah, the top Republican on the Senate Finance Committee. "It is no surprise that 79 senators went on the record to repeal this job-killing tax."
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If you like not paying taxes...
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The US is so beyond bankrupt at this point.
It started with a moral bankruptcy that's transitioning into an actual one.
There are so many laws and taxes now that even the taxers cannot figure it out.
Basically they walk around with guns taking "donations" now.
A banana republic with no bananas.
pods
"If you like your money; you can keep your money."
Hands up!
Oh yeah, that only applies in Ferguson.
For the most part the tax slaves hand it over willingly.
Except, of course, the corporations. It's surprising to me that 76% paid this tax.
If the care was so good, why did you have to put a gun to our heads to make it work for ya?
I wonder if dildos are considered med devices or just tools like the ones in CONgress.
And of course the story is "thousands of firms not paying becuase we are coming up 24% short of predictions" ........ and not "oops our projected revenues from the medical tax were off by 24% because we just threw some number out there we made up to make sure we could sell this farce as debt neutral"
Winner, winner, chicken dinner.
The reason this government estimates are so off and can be complete bogus is because the US can just print any short fall out of thin air.
Printing is a tax on responsibility. That is how they make up tax shortfalls, by taxing all of us even more to pay for free healthcare.
Mr. Beeblebrox,
Please to explain for Boris, how is tax on medical device, not is tax on patient? How is citizenry of USSA so flaming stupid as believing of rhetoric that Obamascare is not cost taxpayer money...!?
In Russia, people is know when politician lip is flap is telling lie, in USSA, citizenry is half believe lie in adoration of skin color of politician.
Sincerely,
Boris
?
When did I say a tax on medical devices is not a tax on patients? Yes, they are.
I then added that they will additionally tax us through printing and devaluation of savings. Which they are/will.
Brother Ronald Reagan declared war on American children in the 60s and adopted Soviet education methods.
-James Madisonatm, many on ZH understand the laws regs exec orders, to make it simple ..all laws support the club you are not in.
pods wins the internet. game over
There are so many laws now that everyone is guaranteed to break the law. Which is how the collectivists want it and the people are always afraid.
http://www.harveysilverglate.com/Books/ThreeFeloniesaDay.aspx
1000s Of Firms Aren't Paying An "Obamacare Tax"
Shhh....neither am I.
Of course I know lots of people that don't even have heathcare anymore. The ones I know that still do can't afford to go to the doctor because of the high deductible.
Everyone can get health care as it is illegal to withhold care from people. Just show up at an emergency room and claim you don't speak english, don't have any ID and have no money.
What I think you are trying to describe is health insurance, which really isn't insurance at all.
My first job was at a VA hospital, they cannot refuse care. Ambulances would drop off indigent that were denied elsewhere.
but the citizens still have money
The tax is projected to generate $29 billion over the coming decade
weird... I didn't know Obamacare was nothing more than a tax revenue system...
But I guess it's happening all over the world. Over here in Belgium, our government needs to "find" 6000 euro's PER WORKING CITIZEN for next year.
Guess what that will do to our taxes....
my god...
Everyone will get a 6000 EURO raise and 6000 EURO tax- "winning"
The question is, how can you say Obamacare will eventually reduce the cost of individual healthcare when you have a ten year $29 billion planned tax on medical devices that increases costs? Obamacare in part is based on the assumption that younger health insurance members will require fewer medical services since younger people are healthier. In America, younger people get in more catastrophic car accidents, younger people are becoming obese and then diabetic at a greater rate and younger people are boozing it up more than ever. So, when these younger people without health insurance now get access to Obamacare, there is a good chance they will cost the system plenty at first as they get treated for long ignored medical conditions. The U.S. medical system is an overpriced train wreck that Obamacare did nothing to cure.
The concept of the healthy young paying for the sick/old is going to work about as well as the currently working paying the social security of the retired.
Junction, Amen to that. I had no idea about the price level of american medical system before I saw this: http://kuvaton.com/browse/28992/getting_sick_sucks.jpg .
$55,000 is crazy price for curing appendicitis! In Finland the same procedure would have cost me 34 € (in a quality public hospital)
LOL WHAT? 55000 for curing appendicitis??? You should buy a ticket and fly to another country and do it their than come back and you still will have about 50000.....
That's just the asking price... unfortunately, some people are dumb enough to pay it.
I wonder how much it would've been had he paid cash. 20%? Less?
No, it might be more because the "insurance" companies get huge breaks on price as compared to non connected cash payers. The system is so corrupt that paying cash will cost you a LOT more.
If you want to see how it works try here:
M.D.
Martin Armstrong, posted, wrote that he is seeing the US targeting business people more and more because there is a higher chance of confiscating money from them.
Now that is just bankrupt and sad.
An American, not US subject.
Full faith and credit, bitches.
"If you like your doctor, you can keep your doctor."
"If you like your health insurance, you can keep your health insurance."
Conveniently, the elected ruling political elite have voted and passed to exempt themselves from obamascare....
BTW, Phoenix VA Hospital quality health care coming to to you and your neighborhood soon.
Eight-Year Car Loans Fuel Canada Sales Over Debt Warnings - Bloomberg
When this debt bubble explodes; it will make the subprime bubble look 'contained' by comparison...
“On a 96-month loan it takes 80-plus months before you are back in the money,”
Why bother buying... just lease it...
So, corporations get a pass, the individual does not. All according to plan. Once everyone is broke there will be no stopping a single-payer system.
Use the religion examption and have them prove it, not you.
You didn't read the part about this being the medical device tax did you?
there will be no stopping a single-payer system.
Unless your mind lives outside the matrix.
Hey, Doc, how's about I pay you a Kruggerand and buy you a round at Poppy Hills for my knee replacement?
How can I get an pass to stop paying taxes?
Just don't pay. It will take them a long time to figure it out, if they ever do.
Just be ready to run if that time comes.
You can't run.... about the only way to avoid it is if you have a benefactor who likes to give you cash gifts or you work for cash that never touches a financial account... because they'll even garnish your subsidized living if you're on the dole. The best way to push back is to convince them that you can't pay them shit, so why bother with the cost of collection/enforcement.
Make sure your return is filed so that the statute of limitations begins to run... once the time runs out, there isn't a damn thing they can collect. However, they can toll the statute of limitations during certain events, e.g. bankruptcy, while discussing an offer in compromise, etc. If you don't file a return, then sometimes they will file one for you. Obviously, it will have some rosy projections about your income/profit. Regardless of who files, once filed, the limitations period starts.
ATM - 1
MachoMan - 0
I junked you for "You can't run.". Fuckin watch me.
Then I auto-junked for replying to my own comment.
Tell'em your hard disk crashed. And the backups crashed too.
"I was taking it to a drive recovery place, but it fell out of the truck and fell into the river. So sad."
Seriously! Just print out a few 2014 news stories with comments such as, "The hard drive crashed" and "All information was lost", and just send them to the IRS on April 15th.
Sign it, "My Bad".
Ask them to show you the law where it says you have to.
That usually never works because they get you to contract in one way shape or form to the 14th amendment trust, then they have you.
pods
How can I be compelled to perform under secret contracts?
What about 12 USC 411?
I am not saying it's right, I am just saying that is how it works.
I have read a lot about this, from all the usual susptecs (Banister, Kidd) but it is a tough thing to try and do.
Interesting that 12USC411 seems to still allow redemption in lawful money?
I am too old and too busy to try and navigate that road. Instead I avoid debt to try and crash this system.
pods
Yeah well, the assholes want their money. Agreed on the avoidance of debt and said system crash. I just wish there were more I could do.
This is nonsense... The loopholes have been shut. The same people who compel laws in their financiers' favor are not going to allow you a legal end around.
What all of these arguments boil down to is natural rights. I'm sorry, but those have nothing to do with the legal system. Essentially, you're making a policy argument while at the same time there is a contrary law on the books that has already been upheld to the ends of the earth. While you might declare yourself sovereign, the state in which you live has already decided otherwise.
If you can think up the tax avoidance mechanism, then it has already been tried (no one wants to pay taxes, especially the folks who have enough money to pay someone to scour the system to ensure they can avoid taxes)... the vast majority of schemes are born losers. What does successfully get through is usually only for a single case/short duration as the loophole gets closed.
Good for these companies. Keep it up. Now the citizens need to do the same with their wages. If only we could eliminate withholding.
"If only we could eliminate withholding." - Do what the BRIICs are doing, avoid the dollar or traceable transactions.
This whole disaster is planned, but based on democrats getting the next presidency too.
If they do then expect hillary to say something along the lines of "this is so complicated and such a mess, we a dropping everything for a 5% federal sales tax to pay for it instead"
It will look like they are helping fix OC but it would have been the original goal all along.
The murals at the Denver Airport......are starting to make a lot more sense.
so does that cartoon "Pinky and the Brain"
If medical devices include scooters and other fraud related billable items, I'd say somewhere between 15-24% is the correct percentage of fraud running in the system. You think firms that are already ripping off the system are going to pay tax! Hell, I am at least happy the IRS is not sending these firms refunds checks like they do some of the individual "taxpayers" who ask for them.
No kidding...these Scooters will be made in China by a company headquartered in some tax shelter and owned by fake people. Come and get me..............
is be-heading covered under obuma care? gosh I hope so.
They don't cover infant flashbang burns either.
http://reason.com/blog/2014/08/19/georgia-county-wont-pay-medical-bills-fo
You may get a discount for losing 10 lbs of body weight.
Companies like Boston Scientific and Owens & Minor would rather pay bribes to both parties than pay a tax that would cut into their bonus checks. What a farce! The only bag holder for this POS legislation are the poor middle class schmucks.
I forget.....how are the republicans and democrats different again?
No ideology allowed.....just the facts.
Power, money, and control is the holy trinity of both parties.
There is no real difference.
You have a choice between one political party that will do the wrong thing and one that won't do the right thing.
We the sheep get to vote on which wolf will be selecting the entre at dinner.
Doesn't have adequate tools means you medical suppliers need to shred some documents.
I thought that some of the companies in this sector had higher profits than I had anticipated. Now I see why.
Because this tax should be sending some of the companies that are marginally profitable into bankruptcy.
Hahahaha! They know they aren't paying but have no idea who they are? Sounds like par for the progressive big government bureaucrats' course. Is there no better evidence that these knife fingered GS economic butchers are killing all manner of economic opportunity in America?
NOW can we throw this piece of shit in the dustbin of history?
Last I checked no gvt system generated revenue, rather the systems collects aka. steals money from the productive arm of society.
Think of it this way:
While the middle class devotes its energy to feeding, clothing, transporting, heating, providing waste disposal, water, electricity, health care, telecommunications services, etc to the government and the bankers, thereby freeing them up of any of the tasks of earning a living, these parasites are now free to spend their idle hours figuring out ways to extract your money/work product. Basically stabbing their benefactors in the back in a vicious catch 22. Of course, as a productive middle class worker, you are preoccupied with your job and can't devote time to defend your money from being stolen by these jackals.
The government pioneered the use of FUD. Fear, Uncertainty and Disruption. Cloward Piven is at the Southern border and Missouri.
"The more you tighten your grip, Obamacare, the more medical device makers will slip through your fingers" -- Princess Leia
Hell, I am having to pay 1334.38 a month to buy a software program from NextGen that was sold to me by TSI out of Durham or Raleign NC, and this contract purchased by Key Equipment Company , a subsidiary oif Key Bank, NA. that has been hounding the hell out of me for alleged late pyment penalty fees. What a racket!
Never wanted to buy this software program from the get go, but the electronic medical software that I had already working in my office didn't handle the patients medical, history, and physical findings in a convenient data format the government could mine, so I was "forced" by CMS to buy this software. Then when the arrogrant fat pig hospital administrator hired additional doctors becuase "volume was down", I was forced out of private practice and stuck with this software purchase.
Oh yeah, when it was found out that these new hired doctors were costing the hospital big time, the hospital had to be sold, well, it wasn't sold because no one would buy it, --make that leased. One of the doctors turned out to be a nutjob and was fired. The other remaining one-well he does less than I did---the wonders of incentive when you are no longer in private practice.
After I closed the practice, this adminsitrator and the CFO were quietly fired, escorted out of the hospital by police.
And now comes the rest of the story as Paul Harvey used to say. Obamacare.
I am thoroughly fed up with the system. Won't invest in the market for funny money certicates of stock.Buying silver and gold. Now have to figure out how to get sell the house and office building I left in NC so that if the governement tries to go after gold and silver, I can say I lost it in a boating accident. I figure under such a scenario, the government will then resort to confiscating my house or office building or any other assets to collect on any nominal increase in "profits" if I were to sell the PMs.
but this is what it is all about:
THE GOVERNMENT, AND THEIR CORPORATE CRONIES, ARE ON A CAMPAIGN TO EXTRACT WHATEVER ASSETS THE MIDDLE CLASS HAS LEFT!
There are an incredible amount of software companies that make good products to run a clinic... however, there are probably more that are total scams and doctors tend to be very easy bait.
Is there any reason why you sold your private practice? It has happened all day, every day, for decades now and I'm always curious about the individual decision-making process for each sale. I'm actively involved in getting medical professionals to go back to private practices, so it's very interesting to me.
Didn't sell it. Had to close it. The hospital I think spent big money to set up a new office for the competing orthopods, essentially leaving me with a building that I fortunately was able to rent to a nephrologist. I think the hospital was figuring that they would make it prohibitively expensive for me to leave by denying me the opportunity to sell the practice to them or these new doctors which they set up, even though they had a history of job hopping.- the nut job having been in 10 locations . The hospital literally hired them off the street. By losing seemless emergency room coverage by my departure, the hospital could no longer qualify as a level 3 trauma center (dropped to level 4) which meant lower reimbursements. But in the meantime, all the computers, hardware, x-ray from my old practice are sitting useless.
Colleagues asked me how much does it cost to set a practice? I said "you are asking the wrong question! How much does it cost to CLOSE a practice?"
At age 59, will never, ever, go back to private practice. Doctors now have to be prepared to live a nomadic existance- not buying houses, not settling in communities, but rather being ready to pull up stakes on very short notice when the employing hospitals and HMOs etc turn treacherous. The costs of recruiting, or using temporary docs (locums), and turn over are the only thing the doctors have left to bargain with.
Bastards.
Barry strikes again. Holder is a fucking cartoon.
I'm not worried, I'm sure Nancy Pelosi will give me a waiver. It's not like she only gave them to her biggest donors. /s
And USA told countries about corrupt goverment...
IRS, stop fucking creating distraction stories. Where is the computer hard drive's and uploaded cloud information? Just wait, you'll hit 80% shortcomings when people stop paying taxes. This avoidance to present information will not go away.
I'm shocked it hasn't all gone like clockwork.
A dollar not stolen by the government is a dollar more for the people and a dollar less to be used against the people by the government.
An American, not US subject.
Nobody is stupid enough to pay for that crap unless the DHS has a boot to their neck. Damn thing is an attack on the United States of America by Washington D.C. globalists. Americans going to kick their asses.
Kinda funny about this article, can't find many down votes? I wonder...hhmmmm...
1/3000 of federal revenue.
Imagine the revenue cash flow with the healthcare Cadillac tax scheduled for enactment in 2018. But the more likely scenario is either most pricey plans will scale back their healthcare plans to save them the added tax, or the congress will pass a bill that dissolves the Cadillac tax enactment.
I hope, the agony will go on the next 10 years.
The IRS is staffed with idiots and overwhelmed by Obamacare. What a great time to forget to pay taxes.
I guess the suc- proud, hard working patriotic Americans will accept this challenge and pick up the shortfall.
I got this email from Judicial Watch today, it looks like the Justice department is saying that the so-called lost emails were backed up as are all government records.
Judicial Watch announced the following developments in our IRS missing emails investigation. Judicial Watch President Tom Fitton stated:
Department of Justice attorneys for the Internal Revenue Service told Judicial Watch on Friday that Lois Lerner's emails, indeed all government computer records, are backed up by the federal government in case of a government-wide catastrophe. The Obama administration attorneys said that this back-up system would be too onerous to search. The DOJ attorneys also acknowledged that the Treasury Inspector General for Tax Administration (TIGTA) is investigating this back-up system
We obviously disagree that disclosing the emails as required would be onerous, and plan to raise this new development with Judge Sullivan.
This is a jaw-dropping revelation. The Obama administration had been lying to the American people about Lois Lerner's missing emails. There are no "missing" Lois Lerner emails - nor missing emails of any of the other top IRS or other government officials whose emails seem to be disappearing at increasingly alarming rate. All the focus on missing hard drives has been a diversion. The Obama administration has known all along where the email records could be - but dishonestly withheld this information. You can bet we are going to ask the court for immediate assistance in cutting through this massive obstruction of justice.Here is the second set of sworn declarations by IRS officials in response to Judge Emmet G. Sullivan's investigation into the missing emails of Lois Lerner and other IRS officials. The declarations were provided after close of business on Friday, August 22.