Monday, August 27, 2012

House Committee Seeks IRS Papers on Healthcare Law


WASHINGTON (Reuters) Aug 23 - The Republican chairman of a House of Representatives investigatory panel sought documents on Wednesday from the Internal Revenue Service in a battle with the White House over the Democrats' controversial healthcare law.

House Committee on Oversight and Government Reform Chairman Darrell Issa demanded all documents and communications between the IRS and President Barack Obama's White House after the healthcare overhaul law was signed into law in March 2010, in a letter released on Wednesday.

Issa has challenged the Obama administration's authority to administer the healthcare law in states that are refusing to cooperate. A handful of Republican governors have opted not to establish health insurance exchanges that are required by the law.

The IRS is charged with distributing health insurance tax credits through the state exchanges. Issa argues that federally-created exchanges, set up in the resisting states, cannot deliver the tax credits.

At a hearing earlier this month, IRS Commissioner Doug Shulman said the agency can distribute the tax credits.

Shulman acknowledged that "there is some contradictory language" in the healthcare law.

The oversight committee, which has subpoena powers, requested the IRS documents by September 4. Any weaknesses the committee finds could be used as evidence in a court challenge of the law's implementation.

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