IRS proposes expanding tax return information it will disclose to HHS under health care acts

On Friday, the IRS issued proposed regulations relating to how it will release certain tax return information to the Department of Health and Human Services (HHS), as required by 2010’s health care legislation (REG-119632-11). The proposed regulations describe certain items the IRS will disclose in addition to those required by Sec. 6103(l)(21).

The Patient Protection and Affordable Care Act, P.L. 111-148, required the HHS to establish a program under which affordable insurance exchanges can determine whether individuals are eligible to enroll in qualified health plans under the exchange and eligible for other benefits under the health care acts. Sec. 6103(l)(21) permits the IRS to disclose to the HHS certain tax return information to help the exchanges determine taxpayer eligibility where income verification is required.