IRS overpaid billions in Obamacare subsidies and can't recover it

A Treasury Department watchdog says that the IRS overpaid Obamacare subsidies for taxpayers by $3.5 billion in 2015 alone, and because of constraints built into the law at the time it was passed, cannot recover the money. How much of the overpayments were due to fraud? The basic problem appears to be taxpayers underestimating their income for the year. And it didn't matter to the agency whether the extra subsidies were the result of an honest mistake or an effort to defraud the government.  Incredibly, the overpayments amounted to more than 25% of all subsidies paid out in 2015 - $5.8 billion out of $24 billion paid out.. The agency was able to recover about $2.3 billion leaving $3.5 billion in unrecoverable subsidies. It is estimated that the 2017 amount of overpayments is 5 times the number from 2015. Washington Times: The amount they receive is based on their expected earnings. At the end of the year, they are supposed to reconcile what they anticipated with...(Read Full Post)

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