Could the IRS Tea Party Scandal Harm the Healthcare Reform Law?

The Internal Revenue Service is under fire this week, as news broke of the agency's targeting conservative political groups for tougher scrutiny in their applications for tax-exempt status. The ordeal has prompted a storm of political controversy, and it may pose problems down the road for the Patient Protection and Affordable Care Act as well, according to a Fiscal Times report.

The IRS will largely oversee and enforce the provision of near-universal health insurance, a PPACA initiative set to begin in 2014. The agency is responsible for overseeing the tax credits and tax increases in the law and for ensuring businesses and individuals comply with the individual mandate and other major provisions. If individuals are not insured after the individual mandate takes effect, they will be responsible for paying a fine to the IRS.

This week, an investigation by the Treasury Inspector General for Tax Administration found the IRS scrutinized groups with "tea party" or "patriot" in their names and further questioned their applications for tax-exempt status. The scrutiny was also extended to groups with other politically conservative interests. The investigation also found that high-ranking IRS officials new about this practice as early as mid-2011.

The recent developments involving the IRS have already sparked criticism from GOP lawmakers, as they can now charge the agency overseeing a portion of PPACA implementation is politically tainted.

Former GOP presidential candidate Newt Gingrich appeared on an MSNBC talk show yesterday, where he said: "Why would you trust the bureaucracy with your health if you can't trust the bureaucracy with your politics?" Sarah Palin and Rep. Diane Black (R-Tenn.) have also made public comments on the ordeal, saying the IRS should not be trusted with health insurance information.

The House of Representatives has already planned a vote to repeal the PPACA this week — the 37th time it has done so — but the vote again will only be symbolic since Democrats control the Senate.

More Articles on the Patient Protection and Affordable Care Act:

PPACA Anti-Discrimination Clause May Fine Executive Health Plans $500k
PPACA Compliance Will Take 190M Hours Per Year: GOP
After "Train Wreck," Outgoing Senator Baucus Defends PPACA


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