IRS Could Not Verify 40% Of $15 Billion Of Affordable Care Act Tax Credits Due To Lack Of Data From Health Insurance Exchanges

TaxProf Blog:
"The Affordable Care Act created the refundable Premium Tax Credit (PTC) to assist eligible taxpayers with paying their health insurance premiums.
...According to the IRS, almost $11 billion in APTCs was paid to insurers in Fiscal Year 2014.
...For example, the IRS did not receive Exchange Periodic Data for approximately 1.7 million (40 percent) of the approximately 4.2 million Federal Exchange enrollment records and did not receive the Exchange Periodic Data from six of the 15 State Exchanges.
Because of incomplete and unreported data from the Exchanges, the IRS is unable to ensure that taxpayers claiming the PTC purchased insurance through an Exchange and properly reconciled APTCs received.
However, the IRS has developed processes to identify erroneous PTC claims.
Our review of these processes identified that 79 of the 80 reject code conditions and 16 of the 20 PTC error codes were working as intended.
Computer programming errors resulted in the reject and PTC error codes not always identifying tax returns with the particular error condition.
The IRS plans to make programming corrections."