Noem Urges IRS and HHS to Offer Relief for Farmers Sent Wrong Obamacare Form

Washington, D.C. – Rep. Kristi Noem today urged Secretary of Health and Human Services (HHS) Sylvia Burwell, IRS Commissioner John Koskinen and Treasury Secretary Jacob Lew to offer relief for farmers who were sent incorrect Obamacare tax forms. Earlier this month, the IRS admitted to sending 800,000 incorrect Form 1095-As – a mistake that will uniquely impact farmers who have an earlier tax filing date and therefore less time to wait for the correct forms to arrive.

“I am extremely concerned about the effect the government’s mistake will have on hardworking South Dakota farmers, as they are subject to unique filing deadlines,” said Noem. “Certainly, farmers are in need of relief similar to that which was previously announced for individuals who had already filed. Their financial independence should not be in any way put at risk because of yet another ‘glitch’ in the implementation of the President’s health care law.”

Rep. Noem is a member of the Oversight Subcommittee of the House Ways and Means Committee, giving her jurisdiction over the IRS on matters such as this. The Congresswoman’s letter to Secretary Burwell, Commissioner Koskinen, and Secretary Lew can be found below.

February 26, 2015

The Honorable Sylvia Burwell
Secretary
Department of Health and Human Services
200 Independence Avenue, SW
Washington, DC 20201

The Honorable John Koskinen
Commissioner
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20225

Dear Secretary Burwell and Commissioner Koskinen,

As you know, the President’s health care law requires taxpayers who receive health insurance through the Federal health insurance exchange – including many South Dakotans – to rely on Internal Revenue Service (IRS) Form 1095-A to prepare their Federal tax returns. While the Department of Health and Human Services (HHS) provides this form to taxpayers, recent media reports indicate that HHS recently sent approximately 800,000 incorrect Form 1095-As to taxpayers across the country.

To be sure, the government’s error places an additional and needless burden on taxpayers – on top of the already onerous obligation to comply with the healthcare mandate. I am particularly concerned, however, with the effect that the government’s mistake will have on South Dakota farmers, as farmers are subject to unique filing deadlines. Under Internal Revenue Code (Code) § 6654, farmers are permitted, in lieu of quarterly estimated tax payments, to pay their total tax for the year by March 1st of the following year. For this year, the due date for farmers to file their 2014 tax returns and remit their total payment is next Monday, March 2, 2015. This means that a farmer who received an erroneous Form 1095-A, has five days including today to meet his filing obligation without the correct information from the Federal government. And, compounding the situation, the IRS has directed taxpayers who received these incorrect forms not to file their tax returns until corrected forms are sent.

Clearly, farmers are in need of immediate relief similar to that recently announced for individuals who have already filed their 2014 tax returns. In similar situations, such as the delayed passage of the American Taxpayer Relief Act of 2012 (ATRA), the IRS has historically used its authority under Code § 6654(e)(3) to extend the filing due date for farmers and waive relevant tax penalties.

As a Member of the Oversight Subcommittee of the Committee on Ways and Means, I am committed to ensuring that your agencies implement the nation’s tax and health laws in a fair and reasonable manner. To guarantee that South Dakota farmers will receive relief from the government’s error, please provide the following information as soon as possible:

1) Will the IRS provide an extended filing due date for farmers affected by erroneous Form 1095-As? If so, when will that extension be announced, and will it include guidance similar to that which was provided in response to ATRA?

2) Will farmers who are forced to file an amended return or refile be subject to a penalty and/or interest on any underpayment of tax? If so, will the IRS grant relief from such penalties and/or interest in this case and how should affected farmers apply for that relief?

Thank you for your assistance in this matter. If you have any questions, please contact my staff at 202-225-2801.

Sincerely,

KRISTI NOEM
Member of Congress

CC: The Honorable Jacob Lew, Treasury Secretary

###

Rounds Receives Assurances that Decision on Hot Springs is not Predetermined

WASHINGTON, D.C. – U.S. Sen. Mike Rounds (R-S.D.), a member of the Veterans’ Affairs Committee, today received assurances from U.S. Department of Veterans Affairs (VA) Secretary Robert McDonald that the agency has not made any premature decisions regarding the Hot Springs VA hospital.

Rounds asked: Would you be able to assure the committee that the SCIP items in the Fiscal Year 2016 budget request regarding the Black Hills Health Care System are not an indication of a predetermined decision for the Hot Springs Hospital?

McDonald assured: There’s no indication of any decision being made at Hot Springs. I have made no decision. We’re still collecting data, and the study is still being done.

Full video of the exchange is available here:

Yesterday, the delegation met with Sec. McDonald after the administration’s 2016 budget request proposed measures to close Hot Springs VA facilities, despite previous assurances that the VA would not act without finishing a fair and thorough Environmental Impact Statement (EIS). That prompted a delegation letter urging Sec. McDonald to withdraw all plans to reconfigure the Black Hills Health Care System from the Obama Administration’s budget proposal. Sec. McDonald has made a personal commitment to Rounds to continue to work with the delegation on the issue.

###

Thune Statement on FCC Vote

WASHINGTON, D.C.—U.S. Sen. John Thune (R-S.D.), chairman of the Senate Committee on Commerce, Science, and Transportation, issued the following statement on the FCC’s 3-2 vote to regulate the Internet:

“Despite the Federal Communication Commission’s partisan action to approve a 317-page power grab over the Internet, the fight to keep the Internet unburdened from regulatory overreach is far from over. As parties line up to challenge this action in court, it will soon be time for Congressional Democrats to review the situation and decide if they are prepared to join a bipartisan effort that brings real certainty to American consumers and provides the necessary protections to the Internet. Only action by Congress can fix the damage and uncertainty this FCC order has inflicted on the Internet.”

###

From today’s Argus Leader website comes a story about the tax increase proposal no one is really talking much about… Until tonight, on the eve of the measure moving forward in the House, after narrowly passing the Senate.

“The key thing to remember is, we have a limited capacity in our overall sales tax system,” Wiest told legislators at a bill hearing Feb. 4. “We cannot have as a state a 15 percent sales tax when you combine state and local sales tax. That’s not going to work for citizens in the state. They won’t permit it.”

Still, governing bodies in 100 communities across the state have signed on in favor of the legislation. The Senate passed it 19-14 earlier this month. It now goes in front of the House Taxation Committee Thursday morning.

And..

This new legislation would give community residents another option, said Yvonne Taylor, executive director of the South Dakota Municipal League. A property-tax opt out puts the burden only on local residents. Up to an additional third penny in sales tax captures anyone doing business in a community, she said.

Beyond that, governmental bodies decide on property tax opt outs, though their decisions can be referred to a vote. With this new legislation, a vote is mandatory.

Bob Riter, a lobbyist for the South Dakota chapter of the National Federation of Independent Businesses, believes SB 135 if passed could put state businesses at a competitive disadvantage, especially for those near neighboring states that have a lower sales tax structure.

Read it here.

How much would this increase taxes for South Dakotans? According to the note from Americans for Prosperity this evening, it bypasses the $100 million highway proposal that was labeled DOA for being the largest tax increase in state history, and does it better by another $50 million:

It’s the biggest tax increase you’ve probably never heard of.

The legislature is considering a bill that would allow cities to impose an additional 1-cent sales tax increase. If every city in South Dakota participated, it would mean more than $150 million in new taxes.

We Need You To Help Stop It

With all the debate on the highway funding bill, it seems almost no one is talking about this secret sales tax increase. We can’t let this bad tax policy get passed into law! The worst part? The bill was approved by the South Dakota Senate and is headed to the South Dakota House for a vote.

Send a letter to your legislator today: Tell them to vote NO on the sales tax increase!

Instead of finding new ways to let government raise taxes, lawmakers should be looking for ways to reduce the burden of government on taxpayers.

Thanks for all you do.

Sincerely,

Ben Lee
AFP South Dakota
State Director

If legislators rejected a tax package which would have cost taxpayers $100 million… Then why is a $150 Million tax proposal sliding through so quietly?

Or maybe not so quietly now that the cat is out of the bag.

Delegation Meets with VA Secretary to Urge Reconsideration of Proposal to Close Hot Springs VA

WASHINGTON, D.C.—Following a February 10 letter from the South Dakota delegation to U.S. Department of Veterans Affairs (VA) Secretary Robert McDonald urging the Obama administration to withdraw its budget proposal plans to reconfigure the Hot Springs VA, U.S. Sens. John Thune (R-S.D.) and Mike Rounds (R-S.D.), member of the Senate Veterans’ Affairs Committee, and Rep. Kristi Noem (R-S.D.) held a delegation meeting today with the secretary to reiterate their concerns with the administration’s proposal to close the VA Medical Center. South Dakota Secretary of Veterans Affairs Larry Zimmerman, Deputy Secretary Aaron Pollard, and VA Black Hills Director Stephen DiStasio were also in attendance.

At the meeting, Secretary McDonald assured the delegation that the Environmental Impact Statement (EIS) process remains underway and that no decision has been made at this time. The VA expects the draft EIS to be released in June of 2015, which will be followed by a public comment period. Secretary McDonald has declined numerous invitations to visit the Hot Springs campus and the delegation encouraged him once again to visit Hot Springs as soon as possible.

“Today’s meeting made clear what we’ve known for some time—the VA hasn’t been straightforward with South Dakota veterans,” said Thune. “I will hold Secretary McDonald to his pledge to reconcile the long-standing discrepancies in cost estimates and veteran impact data on the closure of the Hot Springs facility. After more than four years, I think they owe our veterans honest answers about the hiring practices and management decisions that have been made to get Hot Springs to this point. I urge the secretary to properly incorporate the new State Veterans Home in the EIS, and consider the healing potential of an expanded PTSD center in Hot Springs. The Obama administration should stop giving veterans this bureaucratic run-around and start providing answers.”

“I thank Secretary McDonald for meeting with the delegation today and following through on his personal commitment to me to remain engaged on this important issue,” said Rounds. “I appreciate his willingness to sit down with the delegation to make sure we are all working with the same data. I am also happy to have his assurance that no decision has been made on the reconfiguration of the Black Hills Health Care System. The Hot Springs VA hospital has the potential to become a national model for providing veteran care to rural veterans.”

“It’s critical that the secretary visit Hot Springs, talk to the veterans who use the facility, and see this community known as ‘Veterans Town,’ which is something I’ve pressed him on before and again today. I plan to hold him accountable for the assurances he made today: that he will visit Hot Springs after the EIS is completed but before any decision is made,” said Rep. Noem. “While it was good to hear assurances that the secretary plans to visit, the VA failed to offer veterans and the Hot Springs community any more clarity on the significant data discrepancies that have marred this entire process – nor did the agency give any certainty that the outcome of the EIS was not determined before the process even began. Our veterans deserve answers as well as a fair an unbiased EIS process. I am deeply concerned that they have not received either thus far. I strongly urge the secretary to consider the alternatives put forward by veterans in and around Hot Springs and will hold him to his promise to get to a point where we can all work off the same set of facts.”

###

So, how does someone under indictment for several felonies leave the country for Haiti? Don’t they take their passport or something? Or have I been watching too much Law & Order?

I bring this up, as that’s where Dr. Annette Bosworth, who has been pleading with people to send her $400,000 for her family’s expenses, claims to be now on a medical mission. At least, according to her Facebook page.

What do you think about her going overseas while she faces criminal charges in South Dakota?