Portman, Brown Demand Answers From IRS Commissioner on Missed Deadline for Health Coverage Tax Credit
April 13, 2016 - 10:09 AM
Washington, D.C. –Today, U.S. Senators
Rob Portman (R-Ohio) and Sherrod Brown (D-Ohio), members of the Finance
Committee, demanded IRS Commissioner John A. Koskinen address the
potential failure of the IRS to meet the statutory deadline to implement
the Health Coverage Tax Credit’s (HCTC) advance monthly payment (AMP)
program -- a program vitally important to Delphi salaried retirees
struggling to maintain affordable health care.
“For many Ohio Delphi retirees, this tax credit
helps provide affordable health insurance. Now many retirees find
themselves with health coverage they may not be able to afford,” said Portman.
“Retirees deserve an explanation on why IRS pulled the rug out from
under them with so little notice. I will continue to work with Senator
Brown to ensure these retirees get the help they need.”
“The IRS owes Ohio’s Delphi retirees an
explanation as to why help they were promised won’t be there when they
need it to buy health insurance. Many retirees are locked into plans
they may not be able to afford without the Health Coverage Tax Credit,” said Brown.
“HCTC is a lifeline for retirees and I hope the IRS will work with
Senator Portman and me to get this program up and running for Ohioans
who need it.”
The HCTC helps trade-affected workers and select
groups of retirees, like Delphi salaried retirees and their families,
purchase private health coverage to replace the employer-sponsored
coverage they lost. It makes health insurance more affordable by
providing a 72.5 percent refundable tax credit to eligible workers
enrolled in a qualified health plan, allowing these people to pay only a
portion of their qualified health insurance. The HCTC serves as an
important bridge for retirees who are still too young to be eligible for
In February 2015, Portman and Brown introduced a
bill to extend the Health Coverage Tax Credit for five years, through
2019. This legislation was signed into law in the Trade Preferences Extension Act.
Section 407 of the law specifically requires the IRS to implement the
Advance Payment Program within one year of the bill becoming law – June
Just last month, Portman and Brown issued a joint statement expressing their disappointment in the IRS’s failure to meet their deadline.
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