By Vicki Needham - 03/25/10 07:32 PM EDT
Some small businesses will qualify for a 35 percent tax credit, Rep. Ron KindRon KindRyan: Pacific deal can't be fixed in time for lame-duck vote House Democrat expects support to grow for Pacific trade deal Hatch: TPP deal can get done in lame-duck session MORE (D-Wis.) said during a hearing today.
"That's our first move," Shulman said about preparing the agency to handle the tax credit.
Although costs and staffing issues are still under review, Shulman told the committee, "we will need resources to implement the tax provisions of this legislation."
The agency head was responding to estimates made by House and Senate Republicans that say the IRS would need about 16,500 more employees to fulfill its role.
Shulman explained that there won't be any "discussions with an IRS employee over health care coverage." He envisions a system similar to the current 1099 on interest income, but instead is a simple form that verifies insurance coverage.
The IRS also intends to help taxpayers determine whether they are eligible for tax incentives.
"The role of the IRS is going to be again, the tax portions of this, not the health portions of this, and what we are going to do is make sure that people are educated," Shulman said.