Despite having controls in place to prevent improper health care tax credit claims, the Internal Revenue Service could be doing better, the agency's inspector general said.

Though the IRS is usually able to identify false claims for Small Business Health Care Tax Credits by tax-exempt organizations, more improvements are needed to make sure they are being caught in time.

Tax-exempt organizations claimed more than $73 million in tax credits under Obamacare in 2012.

Though denying more than $1.5 million in credits as "improper," additional controls suggested by the Treasury Inspector General for Tax Administration "would provide further assurance that potentially improper claims for the credit are identified and addressed effectively and efficiently."

The TIGTA office notes that without effective IRS oversight, improper or fraudulent credits are given out, "reducing federal government revenue."

View the full report here.