CERCA: Healthcare Working Group Fall Meeting October 12, 2011

Healthcare Working Group: Background The Patient Protection and Affordable Care Act (ACA) calls for the IRS to implement and administer a large number of provisions ACA established the need for most legal residents of the United States to obtain health insurance. Implementation will impact critical IRS systems including: ◦ Submissions processing, account management, document matching, notice generation, and multiple compliance programs. ◦ Establishment of significant new processes ◦ Development of new technology solutions The ACA will also have a significant impact on external stakeholders: ◦ Tax preparers ◦ Taxpayers ◦ Software developers ◦ Education providers

Healthcare Working Group: Purpose Facilitates information sharing between CERCA members and the IRS Address primarily from an IRS perspective, while considering inter-agency interoperability (e.g., HHS, SSA, and States), and other stakeholders HCWG will support IRS to meet their objectives to efficiently implement and administer ACA knowing it will have a significant impact on electronic tax administration

Healthcare Working Group: How we will Operate Gather, analyze and understand available information on IRS implementation Analyze IRS progress and determine its impact on the tax ecosystem. Facilitate dissemination of information via CERCA channels Work with IRS officials on ACA topics, proposed by HCWG members or the IRS Act as a sounding board for the IRS Provide feedback to the IRS, as appropriate

Healthcare Working Group: Identified Areas of Possible Focus Stakeholder Analysis (Roles, Risks, Impacts) Interagency Dependencies Development of Technology Infrastructure Defining Standards Security & Privacy in ACA Implementations Tax Gap, Threats and Implications Complexity of Compliance Ownership by the taxpayers Fraud, Threats and Prevention Consistent Interfaces

Healthcare Working Group: Progress Charter approved by the CERCA Board in March of 2011 Originally chaired by Jerry Anderson of CSC Has met four times in DC since the beginning of 2011 Lauretta Brown of Capgemini, and Kerri Gibson of CCH, have been appointed as co- chairs of the CERCA Health Care

Healthcare Working Group: Highlights of Progress IRS ACA leadership participated in the August 2011 Meeting ◦Confirmed Charter and Goals of HCWG ◦They are looking for our assistance ◦They still have many unanswered questions ◦They will seek our input on specific topics IRS ACA leadership met with CERCA Board and HCWG co-chairs at the September 2011 board meeting to specifically address the Small Business Health Care Tax Credit Finalizing Stakeholder Analysis

Key Stakeholders The reaching impact of ACA is very broad; the HCWG has identified the following key stakeholder categories that by focusing on we can provide value to the industry and the IRS IRS Tax preparers Taxpayers Software developers Education providers

Key Stakeholders: IRS Short-term needsLong-term needs IRS Preparer Education/Outreach Taxpayer Education/Outreach (SB Credit) Identify & Create Tools Creation of inter-agency touch points Partnerships with key stakeholders Inter-agency data exchange Partnerships with key stakeholders Release of information timely to stakeholders Access to hard-to reach stakeholders Effectively manage multi-year rollout

Key Stakeholders: Tax preparers Short-term needsLong-term needs Tax preparers Self/Staff EducationClient Education/Outreach Calculation of small business credit and individual subsidy Understand Data/Record keeping requirement Bill time vs. Taxpayer benefit New requirements rolled out over multiple years Continued client trainingAccessibility to toolsClient PlanningUnderstand process life cycle

Key Stakeholders: Taxpayers Short-term needsLong-term needs Taxpayers Education of immediate impacts and requirements Easy access to information Timing of reporting requirements Individuals: Understanding of subsidy eligibility, coverage requirements & options Business: Understanding employee benefit responsibility Business: Understanding tax liabilities & benefits (SB Credit) Reporting Requirements: timing, what are they New requirements rolled out over multiple years Understanding of various agency responsibility Accessibility to tools

Key Stakeholders: Software Developers Short-term needsLong-term needs Software Developers Intermediate between IRS and other key stakeholders Raising awareness of current components (SB Credit) Product changes to include tools and diagnostics to aid in accurate reporting Implementation of components that impact the tax return Creation of preparer education content Multi-year rollout implementation On-going education of components Timely release of specs and documentation from IRS Consistent messaging to preparers and taxpayers

Key Stakeholders: Education providers Short-term needsLong-term needs Education Providers Timely release of instruction, specs, pubs Consistent messaging to preparers and taxpayers Clarification around vague information Intermediary between IRS and other stakeholders Requirements rolled out over multiple years Manage and update content timely

Healthcare Working Group: Proposed Solutions Information: Create one go-to destination Education: Provide multiple channels of education to reach different stakeholders Tools: Create calculators (FTE, estimator calculators)