The Internal Revenue Service has been doing a better job of processing and reviewing claims for Small Business Health Care Tax Credits, according to a new report, though the number of small businesses claiming the Obamacare credit has declined precipitously.
The report, from the Treasury Inspector General for Tax Administration, noted that in March 2010, the year the Affordable Care Act was signed into law, it was estimated that claims for the credit would average $4 billion annually. That estimate was later revised downward to $1 billion annually for fiscal years 2016 through 2025 when small businesses did not seem to be taking advantage of the credit, which requires complex calculations. However, the actual dollar amount turned out to be even lower. Claims for the Small Business Health Care Tax Credit totaled approximately $519 million in tax year 2010, according to information obtained from IRS systems by TIGTA, and they declined to approximately $120 million as of tax year 2014. In 2010, the number of small businesses claiming the tax credit was 188,303, but by 2015, the number of taxpayers had plummeted to 14,001, claiming $56 million in tax credits.
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