HEAL ALTH THCARE E TAX UPDATE TE Anthon ony Pa Panico, o, C - - PowerPoint PPT Presentation

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HEAL ALTH THCARE E TAX UPDATE TE Anthon ony Pa Panico, o, C - - PowerPoint PPT Presentation

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HEAL ALTH THCARE E TAX UPDATE TE Anthon ony Pa Panico, o, C CPA Partner er, H Hea ealthcare S e Ser ervi vices es G Group Nov ovember 1 11, 2 2014 1 WithumS mSmi mith+Brow own, P PC BE IN A POSITION OF STRENGTH

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HEAL ALTH THCARE E TAX UPDATE TE

Nov

  • vember 1

11, 2 2014

Anthon

  • ny Pa

Panico,

  • , C

CPA Partner er, H Hea ealthcare S e Ser ervi vices es G Group

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E L E CT ION UPDAT E

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AGE NDA IRS a nd Sta te Upda te Afforda ble Ca re Ac t E mploye r Re porting Pre mium T a x Cre dit 2014 F

  • rm 990

De fe nse of Ma rria g e Ac t

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IRS UPDAT E

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2015 L IMIT S

  • E

le c tive de fe r r als to §401(k), §403(b) and §457(b) inc r e ase d to $18,000.

  • Ca tc h-up c o ntrib utio n limit inc re a se d to $6,000.
  • Soc ial Se c ur

ity wage base inc r e ase d to $118,500.

  • Out- of- Poc ke t limits for

gr

  • up he alth plans ar

e $6,600 for individuals and $13,200 for familie s.

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2014/ 2015 PRIORIT Y GUIDANCE PL AN

  • Re le ase d August 26, 2014.
  • 16 pr
  • je c ts r

e late d to tax- e xe mpt or ganizations: 1. Re gulations author izing Commissione r to adopt a str e amline d applic ation pr

  • c e ss for

e ligible

  • r

ganizations to apply for r e c ognition as an IRC §501(c )(3). 2. Re late d r e ve nue pr

  • c e dur

e se tting for th pr

  • c e dur

e s for issuing de te r mination le tte r s on e xe mpt status unde r IRC §501(c )(3) to e ligible or ganizations that file F

  • r

m 1023- E Z.

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2014/ 2015 PRIORIT Y GUIDANCE PL AN

3. Pr

  • pose d r

e gulations unde r IRC §501(c )(3) r e lating to politic al c ampaign inte r ve ntion. 4. F inal r e gulations on applying for e xe mption as nonpr

  • fit he alth insur

anc e issue r unde r IRC §501(c )(29). 5. Guidanc e unde r IRC §512 on me thods of alloc ating e xpe nse s r e late d to dual use fac ilitie s. 6. F inal r e gulations unde r IRC §4942 and §4945 on r e lianc e standar ds for making good faith de te r minations.

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T IGT A 2015 ANNUAL AUDIT PL AN

  • Imple me ntation and administr

ation of ACA.

  • Combating ide ntity the ft.
  • Pr
  • c e ssing of tax- e xe mption applic ations.
  • Inte r

national tax c omplianc e .

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T AX- E XE MPT ION APPL ICAT IONS

  • Matthe w We ir

, Dir e c tor with IRS T E / GE

  • Close d

117,000 applic ations this ye ar ; a 121% inc r e ase fr

  • m

pr ior ye ar .

  • About 95% of all F
  • r

ms 1023- E Z have be e n appr

  • ve d

c losing most applic ations in appr

  • ximate ly 11 days.
  • Conc e r

n that shor t for m is not thor

  • ugh.
  • IRS is instituting “pr

e - de te r mination” pr

  • c e ss and

“post- de te r mination” pr

  • c e ss
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  • Pe nsion Pr
  • te c tion Ac t of 2006.
  • Notic e 2011- 43 and Notic e 2011- 44.
  • Re ve nue Pr
  • c e dur

e 2014- 11; Str e amline d Re tr

  • ac tive

Re instate me nt Pr

  • c e ss.
  • Re asonable c ause – 15 month time pe r

iod.

RE VOCAT ION OF T AX- E XE MPT ST AT US

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RE VOCAT ION OF T AX- E XE MPT ST AT US

  • Or

ganizations have had tax- e xe mpt status mistake nly r e voke d due to no syste matic indic ator in the IRS syste ms r e gar ding whe n an or ganization be gan

  • pe r

ations.

  • Re voc ation le tte r

s se nt out we e ks afte r r e c e iving favor able de te r mination.

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DE L INQUE NT PAYROL L T AXE S

  • T

IGT A July 3, 2014 r e por t “Some T ax- E xe mpt Or ganizations Have Substantial De linque nt Payr

  • ll

T axe s”.

  • Pr

e ss Re le ase August 13, 2014:

  • Mor

e than 64,200 (3.8% ) of tax- e xe mpt

  • r

ganizations have appr

  • ximate ly $875 million of

tax de bt as of 6/ 16/ 2012.

  • 1,200 or

ganizations owe d mor e than $100,000 e ac h.

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DE L INQUE NT PAYROL L T AXE S

  • T

IGT A obje c tive is to de te r mine e xte nt of tax de bt of e xe mpt or ganizations and what E xe mpt Or ganizations func tion has take n to addr e ss non- c omplianc e .

  • T

IGT A fur the r r e vie we d 25 tax- e xe mpt or ganizations.

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DE L INQUE NT PAYROL L T AXE S

  • T

IGT A r e c omme ndations to Dir e c tor

  • f E

O: 1. Coor dinate with Small Busine ss/ Se lf- E mploye d Division manage me nt to r e c e ive r e le vant c olle c tion infor mation, 2. Pe r iodic ally c omple te analyse s to ide ntify tax- e xe mpt or ganizations that pote ntially abuse tax- e xe mpt status for e xamination, and 3. Wor k with De par tme nt of T r e asur y to e valuate whe the r a le gislative pr

  • posal is war

r ante d to str e ngthe n IRS ability to e nfor c e payr

  • ll tax non-

c omplianc e by tax- e xe mpt or ganizations.

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DE L INQUE NT PAYROL L T AXE S

  • T

IGT A r e por t found the following r e gar ding the Voluntar y Classific ation Se ttle me nt Pr

  • gr

am (“VCSP”):

  • IRS doe s not obta in informa tion ne e de d to ve rify a c c ura c y of

a pplic a tions a nd pa yme nts.

  • IRS doe s not re quire e mploye rs to provide informa tion on the

VCSP a pplic a tion tha t ide ntifie s the spe c ific worke rs tha t a re be ing re c la ssifie d.

  • IRS thus una ble to ve rify the a c c ura c y of the c ompe nsa tion

a mount re porte d on the a pplic a tion a nd the pa yme nt owe d.

  • IRS una ble to e sta blish a n e ffe c tive proc e ss to monitor VCSP

a g re e me nts to e nsure c omplia nc e .

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DE L INQUE NT PAYROL L T AXE S

  • Re visions to VCSP:
  • Applic a tion will be re vise d to instruc t e mploye rs to provide

worke r ide ntific a tion numbe r.

  • IRS will use ide ntific a tion numbe r to e va lua te e lig ibility a nd

c omplia nc e with the VCSP.

  • IRS to imple me nt re porting c a pa bilitie s for the Re porting

Complia nc e Ca se Ma na g e me nt Syste m to a llow for sing le inve ntory syste m.

  • IRS de ve lope d a nd imple me nte d inte rna l proc e dure s to

e nsure tha t VCSP inve ntory is a c c ura te ly input a nd a g re e me nts a re tra nsfe rre d to a ppropria te IRS busine ss unit.

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ST AT E UPDAT E

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E CONOMIC OPPORT UNIT Y ACT OF 2014

  • Change s to many tax inc e ntive s in or

de r to de ve lop NJ.

  • Change s to Gr
  • w NJ tax c r

e dits.

  • T

ax c r e dit pr

  • gr

am for r e de ve lope r s donating public infr astr uc tur e .

  • Ne w limits on sale s tax c r

e dits.

  • E

RG Pr

  • gr

am c hange s.

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NJ HOSPIT AL F INANCIAL T RANSPARE NCY

Have no similar disclosure requirements. New Jersey Hospital Disclosure and Public Resource Protection Act passed by the Senate and General Assembly in March of 2012. Vetoed by Governor Christie in August of 2012. State Health Commissioner 6 months to study the issue.

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NJ HOSPIT AL F INANCIAL T RANSPARE NCY

  • T

he e mphasis of the Re por t is on the tr anspar e nc y, or lac k the r e of, that for

  • pr
  • fit hospitals we r

e be ing r e quir e d to r e por t with r e spe c t to financ ial r e por ting, thus r aising c onc e r ns about the ir financ ial viability and the pote ntial impac t that the ir financ ial he alth c ould have on the c ost of, ac c e ss to, and quality of he althc ar e .

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NJ HOSPIT AL F INANCIAL T RANSPARE NCY

Audited financial statements provided to Department, conspicuously published on hospital’s website within 180 days of close of hospital’s fiscal year. Quarterly Unaudited Financial Statements; provided to Department within 45 days of end of quarter and made public on hospital’s website within 60 days of end of quarter. Re por t Re c omme ndations:

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NJ HOSPIT AL F INANCIAL T RANSPARE NCY

Contracts with Related Parties, standardization of disclosures for both for-profit and not-for-profit hospitals. Hospital Charges, aligned with requirements for Medicare & Medicaid Services effective October 1,

  • 2014. All hospitals make available a list of standard

charges for items and services provided on hospital website or in another reasonably available manner.

Re por t Re c omme ndations:

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UNCL AIME D PROPE RT Y

  • State s ar

e e nfor c ing!!!

  • Contr

ac t auditor s c r itic ize d by state s.

  • U.S. Cha mbe r of Comme rc e April, 2014 white pa pe r.
  • Conting e nt fe e a rra ng e me nts.
  • Priva te profit motive .
  • Re c omme nds tra nspa re nc y re forms a nd fe e a rra ng e me nts

whe re priva te a uditors a re pa id on a n hourly ba sis; not a c onting e nt fe e , or a fixe d a mount.

  • L

e gislation c ontinue s.

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AF F ORDABL E CARE ACT

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ADDIT IONAL ME DICARE T AX

L e vie d on e a r ne d inc ome (wa g e s a nd se lf- e mployme nt inc ome ) in e xc e ss of:

  • $250,000 for MF

J

  • $200,000 for sing le
  • $125,000 for MF

S

E xa mple :

  • A, a sing le ta xpa ye r, e a rns wa g e s of

$300,000 in 2013

  • On $100,000 of wa g e s, A will pa y a n

e xtra 0.9% Me dic a re ta x, or $900

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Sta r ting in 2013, hig h- inc ome individua ls will pa y a n e xtr a 3.8% ta x on the le sse r

  • f:
  • Ne t inve stme nt inc ome , or
  • Modifie d a djuste d g ross inc ome – the

a pplic a ble thre shold:

  • $250,000 for MF

J

  • $200,000 for sing le
  • $125,000 for MF

S

NE T INVE ST ME NT INCOME T AX

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ME DICAL DE VICE E XCISE T AX

2.3% e xc ise ta x impose d on sa le s of a ll ta xa ble me dic a l de vic e s Impose d on ma nufa c ture rs, produc e rs or importe rs De fine d in Se c tion 201(h) of F e de ra l F

  • od,

Drug a nd Cosme tic Ac t Re ta il E xc e ption T a x pa sse d down

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Offshore jobs, re se arc h and innovation. AdvaMe d – re pe al is a top priority in 2014. AdvaMe d re port - polle d AdvaMe d me mbe r organizations.

  • MDE

T ha s le d to re duc tion of 14,000 industry worke rs a nd fore g oing hiring of 19,000.

  • 30.6% ha ve re duc e d re se a rc h a nd de ve lopme nt.
  • Approxima te ly 10% ha ve re loc a te d ma nufa c turing outside U.S. or

e xpa nde d ma nufa c turing a broa d.

ME DICAL DE VICE E XCISE T AX

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ME DICAL DE VICE E XCISE T AX

  • PL

R 201351002

  • Che manc e Me dic al Pr
  • duc ts
  • v. Me dline Industr

ie s, Inc .

  • PL

R 201443016 – T ax not impose d on le ase d me dic al de vic e s.

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PAT IE NT

  • CE

NT E RE D OUT COME S RE SE ARCH F E E

  • Issue r

s of spe c ifie d he alth insur anc e polic ie s and plan sponsor s of se lf- insur e d he alth plans.

  • Plan ye ar

s e nding afte r 9/ 30/ 2012 and be for e 10/ 1/ 2019, initial fe e s due 7/ 31/ 2013.

  • Ye ar

#1 - $1 pe r ave r age # of c ove r e d live s.

  • Ye ar

#2 and #3 - $2 pe r ave r age # of c ove r e d live s.

  • Re por

table on Q2 F

  • r

m 720.

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PAT IE NT

  • CE

NT E RE D OUT COME S RE SE ARCH F E E

IRS Notic e 2014- 56.

F

  • r

polic y/ plan ye ar s e nding on or afte r 10/ 1/ 2014 and be for e 9/ 30/ 2015.

F e e is $2.08 pe r c ove r e d life .

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PAT IE NT

  • CE

NT E RE D OUT COME S RE SE ARCH F E E

  • PCORI se e ks to fund pr

agmatic c linic al tr ials, lar ge simple tr ials or lar ge sc ale obse r vational studie s – Winte r 2015 Cyc le .

  • L

e tte r s of inte nt we r e due by 10/ 1/ 2014.

  • T

hose se le c te d we r e notifie d by 10/ 31/ 2014 for full applic ation.

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T RANSIT IONAL RE INSURANCE F E E

  • F

unds r e insur anc e pr

  • gr

am for high- c ost c laimants in the non- gr andfathe r e d individual mar ke t.

  • Impac ts both fully insur

e d and se lf- funde d plans.

  • T

e mpor ar y fe e – c olle c te d annually fr

  • m 2014 to 2016.
  • $5.25 pe r

c ove r e d life pe r month ($63 for 2014).

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T RANSIT IONAL RE INSURANCE F E E

  • # of c ove r

e d live s submitte d to DHHS by Nove mbe r 15, 2014; DHHS will issue amount to be paid by De c e mbe r 15, 2014.

  • Initial payme nt due Januar

y 15, 2015.

  • F

e e is $12 billion in 2014, $8 billion in 2015 and $5 billion in 2016.

  • www.pay.gov
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HHS pr

  • pose d c ha ng e s:
  • E

xc lusion from fe e for 2015 and 2016 for se lf-insure d and se lf-administe re d plans that do not utilize a third party administrator.

  • F

e e will be c olle c te d in two installme nts; first ($52.50) to fund the transitional re insuranc e program and the se c ond ($10.50) to re imburse U.S. T re asury. Se c ond portion due in 4th quarte r of following ye ar.

  • Change in de finition or major me dic al c ove rage .

T RANSIT IONAL RE INSURANCE F E E

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HE AL T H INSURANCE PROVIDE RS F E E

  • Cove re d e ntitie s - ne t pre miums writte n a fte r De c e mbe r 31,

2012.

  • $8 billion for 2014; $11.3 billion for 2015 a nd 2016; $13.9 billion for

2017 a nd $14.3 billion for 2018; inde xe d for infla tion 2019 a nd la te r.

  • T

hre shold - $25 million in the c a le nda r ye a r imme dia te ly pre c e ding the ye a r.

  • Ca lc ula tion a nd pa yme nt.
  • Pe na lty for fa ilure to re port.
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HE AL T H INSURANCE PROVIDE RS F E E

  • F
  • r

m 8963 file d by 4/ 15/ 2014.

  • L

e tte r with amount due se nt by IRS on or about 8/ 28/ 2014.

  • Payme nt was due by 9/ 30/ 2014.
  • Insur

anc e pr e miums de te r mine d by all F

  • r

ms 8963 file d in 2014: $543,550,487,634.29.

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COMPE NSAT ION DE DUCT ION L IMIT

  • Inte r

nal Re ve nue Code §162(m).

  • E

ffe c tive for taxable ye ar s be ginning afte r 12/ 31/ 2012.

  • Pr
  • hibits a de duc tion for

c ompe nsation in e xc e ss of $1 million paid to CE O or top four

  • the r

highe st c ompe nsate d offic e r s of a public c or por ation.

  • Institute for

Polic y Studie s – $72M additional tax r e ve nue .

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E XCISE T AX ON HIGH- COST HE AL T H PL ANS

  • “Cadillac T

ax”

  • E

ffe c tive for tax ye ar s be ginning afte r De c e mbe r 31, 2017

  • 40% e xc ise tax on insur

e r s if aggr e gate value of e mploye r sponsor e d he alth insur anc e c ove r age > thr e shold amount

  • $10,200 individual/ $27,500 family
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E XCISE T AX ON HIGH- COST HE AL T H PL ANS

Sinc e post- 2018 thr e shold adjustme nts ar e not tie d to me dic al inflation, almost all e mploye r s will e ve ntually be c ome subje c t to this e xc ise tax whic h will r aise the ir c ost of pr

  • viding he alth c ove r

age .

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E XAMPL E

  • 10,000 c ove r

e d live s.

  • Pur

c hase of $500,000 of me dic al de vic e s.

  • Patie nt- Ce nte r

e d Outc ome s Re se ar c h F e e - $20,000

  • T

r ansitional Re insur anc e F e e - $630,000

  • Me dic al De vic e E

xc ise T ax - $11,500

  • T
  • tal - $661,500
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42

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IRS F ACT SHE E T 2014- 09

  • Ke y ACA pr
  • visions affe c ting individuals.
  • Individual shar

e d r e sponsibility.

  • Pr

e mium tax c r e dit.

  • Cove r

age e xe mptions.

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43

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  • m

IRS F ACT SHE E T 2014- 10

  • Ke y ACA pr
  • visions affe c ting e mploye r

s.

  • E

mploye r shar e d r e sponsibility.

  • De te r

mining wor kfor c e size .

  • E

mploye r r e por ting unde r IRC §6055 and §6056.

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44

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E MPL OYE R RE PORT ING

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45

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  • m

§6055 AND §6056 RE PORT ING

  • F
  • r

ms 1094- B and 1095- B.

  • F
  • r

ms 1094- C and 1095- C.

  • “DRAF

T ” for ms fir st r e le ase d by IRS 7/ 24/ 2014.

  • “DRAF

T ” instr uc tions r e le ase d by IRS 8/ 28/ 2014.

  • Infor

mation r e tur n with IRS and fur nish state me nt to individuals.

  • E

le c tr

  • nic filing r

e quir e me nt.

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PC ▪ BE IN A POSITION OF STRENGTH

46

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IRS F AQ’S

Basic s of Pr

  • vide r

Re por ting (Q’s 1-4). Who is Re quir e d to Re por t (Q’s 5-15). What Infor mation Must Pr

  • vide r

s Re por t (Q’s 16-19). How and Whe n to Re por t the Re quir e d Infor mation (Q’s 20-19).

F

  • ur

Cate gor ie s:

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47

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PURPOSE S OF RE PORT ING

F

  • rms 1094- C a nd 1095- C:
  • F
  • r

applic able lar ge e mploye r s (“AL E ”) to r e por t offe r s of he alth c ove r age .

  • Assist IRS in administe r

ing § 4980H.

  • Assist IRS in de te r

mining e ligibility for pr e mium tax c r e dit.

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PURPOSE S OF RE PORT ING

F

  • rms 1094- B a nd 1095- B:
  • T
  • assist IRS in administe r

ing the individual shar e d r e sponsibility.

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DUE DAT E S

  • F

ur nish to e mploye e s by Januar y 31st.

  • F

ile d with IRS by F e br uar y 28th if filing on pape r ; Mar c h 31st if filing e le c tr

  • nic ally.
  • CAL

E NDAR YE AR 2015 - F e br uar y 1st, F e br uar y 29th and Mar c h 31st; r e spe c tive ly.

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PE NAL T IE S

F ailur e to F ile Cor r e c t Infor mation Re tur ns or F ailur e to F ur nish Cor r e c t Paye e State me nts:

  • Inte r

nal Re ve nue Code §6721 and §6722.

  • $100 pe r

r e tur n; max $1,500,000.

  • Cor

r e c tions within 30 days - pe nalty is $30; max $250,000.

  • Cor

r e c tions on or be for e August 1st – pe nalty is $60; max $500,000.

  • If me e t gr
  • ss r

e c e ipts te st, pe nalty maximums ar e r e duc e d to $500,000; $75,000 and $200,000; r e spe c tive ly.

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L OOK- BACK ME ASURE ME NT PE RIODS

Ongoing Em ployees

( em ployed for at least one full Standard Measurem ent Period) :

Standard Measurem ent Period ( SMP) Adm in Period Standard Stability Period 3 - 12 months up to 90 days Generally equals SMP (must be at least 6 months) New ly Hired Part- tim e/ Variable Hour/ Seasonal Em ployees

( hired during a Standard Measurem ent Period) :

I nitial Measurem ent Period ( I MP) Adm in Period I nitial Stability Period 3 - 12 months up to 90 days Must equal standard stability period

Must b e < 13 mo nths + fra c tio n (fro m sta rt d a te , inc lud ing a ny p o rtio n o f Ad min Pe rio d use d p rio r to sta rt o f I MP)

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INF ORMAT ION RE PORT ING OBL IGAT IONS

Employer Size Filing Scenario Forms (or Parts of Forms) To Be Filed Reporting Entity Filing Deadlines*

ALE (6056 reporting) Each employee who is “full-time” for any month during calendar year, whether or not offered coverage under the employer-sponsored plan 1095-C, Parts I & II (informational to employee and IRS) 1094-C (transmittal to IRS) Employer To employee: January 31st To IRS: February 28th (March 31st if filing electronically) ALE (6055 reporting) Each individual (full-time or not, family member,

  • thers) enrolled in self-insured plan

1095-C, Parts I, II & III (informational to employee and IRS) 1094-C (transmittal to IRS) Employer To employee: January 31st To IRS: February 28th (March 31st if filing electronically) ALE (6055 reporting) Each individual (full-time or not, family members,

  • thers) enrolled in insured plan

1095-B, Parts I, II, III & IV (informational to employee and IRS) 1094-B (transmittal to IRS) Generally carrier or HMO To employee: January 31st To IRS: February 28th (March 31st if filing electronically) Non-ALE (6055 reporting) Each responsible individual enrolled in self- insured plan 1095-B, Parts I, III & IV (informational to employee and IRS) 1094-B (transmittal to IRS) Employer To employee: January 31st To IRS: February 28th (March 31st if filing electronically) Non-ALE (6055 reporting) Each responsible individual enrolled in insured plan 1095-B, Parts I, II, III & IV (informational to employee and IRS) 1094-B (transmittal to IRS) Generally carrier or HMO To employee: January 31st To IRS: February 28th (March 31st if filing electronically)

*

Sp e c ific filing d e a d line s ma y b e d e la ye d if the y fa ll o n a Sa turd a y, Sund a y, o r le g a l ho lid ay. T his will b e the c a se with re sp e c t to the filing s d ue in e a rly 2016 fo r the 2015 c a le nd a r ye a r.

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PRE MIUM T AX CRE DIT

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PRE MIUM T AX CRE DIT

  • Pote ntially e ligible with house hold inc ome be twe e n

100% and 400% of F PL .

  • Re c e iving a c r

e dit on state v. fe de r al e xc hange .

  • IRC §36B(c )(2) – e nr
  • llme nt “thr
  • ugh an E

xc hange e stablishe d by the State unde r se c tion 1311 of the Patie nt Pr

  • te c tion and Affor

dable Car e Ac t.”

  • Only 14 state s and Washington, DC have e stablishe d

the ir

  • wn state r

un e xc hange s.

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55

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PRE MIUM T AX CRE DIT

L e gislative Ac tivity (F e de r al v. State e xc hange applic ability:

  • Halbig v. Bur

we ll.

  • King v. Bur

we ll.

  • State of Oklahoma v. Bur

we ll.

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  • m

PRE MIUM T AX CRE DIT

  • IRS c an r

e c oup up to $2,500 of ove r paid PT Cs thr

  • ugh

its e stablishe d me thods of de bt c olle c tion.

  • Dr

aft F

  • r

m 1040 r e le ase d.

  • Use F
  • r

m 1095- A r e c e ive d fr

  • m e xc hange to

c alc ulate appr

  • pr

iate PT C.

  • Advanc e d PT

C and F

  • r

m 8962.

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  • m

PRE MIUM T AX CRE DIT

  • Dr

a ft F

  • r

m 8962, Pr e mium T a x Cr e dit (PT C) r e le a se d July 24, 2014; instr uc tions r e le a se d Se pte mbe r 18th.

  • Use d to fig ur

e a mount of PT C a nd r e c onc ile it with a nd a dva nc e d pa yme nts of PT C pa id.

  • F

ile d by individua ls if:

  • You a r

e ta king the PT C,

  • An a dva nc e d PT

C wa s pa id to you or a ny me mbe r

  • f

your ta x fa mily, or

  • An a dva nc e d PT

C wa s pa id for a n individua l for whom you told the E xc ha ng e you would c la im a pe r sona l e xe mption (if no one e lse c la ims tha t individua l a s a pe r sona l e xe mption).

slide-58
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  • m

2014 F ORM 990

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SLIDE 59

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  • m

2014 SCHE DUL E H

  • AHL

A Pr ac tic e Gr

  • up E
  • Mail Ale r

t; 10/ 8/ 2014.

  • F
  • r

m 990, Sc he dule H and instr uc tions r e le ase d.

  • Most signific ant c hange s to Par

t V, Se c tion B.

  • AICPA c omme nts.
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COMMUNIT Y HE AL T H NE E DS ASSE SSME NT

  • F

ir st lic e nse d in c ur r e nt or imme dia te ly pr e c e ding ta x ye a r ?

  • Ac quir

e d or pla c e d in se r vic e in c ur r e nt or imme dia te ly pr e c e ding ta x ye a r ?

  • Colla bor

a te with one or mor e othe r non- hospita l fa c ilitie s.

  • Cha ng e fr
  • m “a va ila ble upon r

e que st” to “ma de pa pe r c opy a va ila ble without c ha r g e ”.

  • R

e por t ta x ye a r la st a dopte d a n imple me nta tion str a te g y; we bsite or a tta c he d to F

  • r

m 990?

  • De sc r

ibe how a ddr e ssing sig nific a nt ne e ds a nd why othe r s a r e not be ing a ddr e sse d.

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F INANCIAL ASSIST ANCE POL ICY

  • F

AP e lig ibility c r ite r ia now c onde nse d fr

  • m four

line s to one line #13:

  • Adde d c he c kboxe s whe the r
  • r

note F PG use d to de te r mine fr e e / disc ounte d c a r e .

  • R

e move d “Uninsur e d Disc ount”, “Me dic a r e / Me dic aid” a nd “Sta te R e g ula tion” a s e lig ibility fa c tor s.

  • Adde d “Unde r

insur a nc e Sta tus.”

  • Ne w c he c kboxe s for

e xpla ining fina nc ia l a id a pplic a tion me thod.

  • Ne w c he c kboxe s on public izing F

AP; r e move d whe the r

  • r

not a tta c he d to billing invoic e s.

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BIL L ING AND COL L E CT IONS

  • Notation that que stions also apply to “othe r

author ize d par tie s” ac ting on fac ility’s be half.

  • Change s to ac tions a fac ility may take be for

e making r e asonable e ffor ts to de te r mine an individual’s F AP e ligibility.

  • Ne w c he c kbox to indic ate that none of the liste d

e ffor ts take n be for e e ngaging in c olle c tion ac tivitie s we r e take n.

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AICPA F ORM 990 COMME NT S

  • L
  • w, Me dium, High impor

tanc e .

  • Ke y e mploye e , c ale ndar
  • v. fisc al.
  • Ne w for

mat for Par t XI, Re c onc iliation of Ne t Asse ts.

  • Re str

ic te d gr ants as offse tting r e ve nue in Sc he dule H.

  • Sc he dule I $5,000 c he c kbox.
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DE F E NSE OF MARRIAGE ACT

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Re ve nue Ruling 2013-17; e ffe c tive Se pte mb e r 16th.

Sa me -se x c o uple s le g a lly ma rrie d in a jurisdic tio n tha t re c o g nize s the ir ma rria g e a re no w re c o g nize d a s ma rrie d fo r fe de ra l ta x purpo se s; re g a rdle ss o f jurisdic tio n in whic h the y re side .

T e rms inc lud e d in the I RC tha t re fe r to ma rita l sta tus will inc lud e a n ind ivid ua l ma rrie d to a p e rso n o f the sa me se x, if the c o up le is la wfully ma rrie d und e r sta te la w a nd suc h a ma rria g e is b e twe e n ind ivid ua ls o f the sa me se x.

DE F E NSE OF MARRIAGE ACT

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Inc o me ta x. E sta te a nd g ift ta xe s. F e de ra l ta x pro visio ns:

  • F

iling sta tus.

  • E

xe mptions.

  • Sta nda rd de duc tion.
  • E

mploye e be ne fits.

  • IRA c ontributions.
  • E

a rne d inc ome ta x c re dit.

  • Child ta x c re dit.

DOMA APPL ICABIL IT Y

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Ad d itio na l pro c e d ure s a nd g uid a nc e fo rthc o ming :

  • Re fund c la ims for pa yroll ta xe s pa id on pre viously- ta xe d

he a lth insura nc e a nd fring e be ne fits.

  • Ca fe te ria pla ns.
  • Qua lifie d re tire me nt pla ns a nd othe r ta x- fa vore d

a rra ng e me nts.

F AQs o n IRS we b site . IRS Pub lic a tio n # 555.

DOMA - ADDIT IONAL GUIDANCE

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DOMA – F ORM 4852

  • Infor

mation le tte r 2014- 0012.

  • Substitute F
  • r

m W- 2 or F

  • r

m 1099- R.

  • Ste ps to be take n:
  • Re que st a F
  • r

m W- 2c .

  • Whe n issue d, file an ame nde d F
  • r

m 1040.

  • If not issue d, pr

e par e and file F

  • r

m 4852.

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QUE ST IONS

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T HANK YOU!

Anthony J. Pa nic o, CPA

WithumSmith+Bro wn, PC Pa rtne r, He a lthc a re Se rvic e s Gro up (973) 532-8847 a pa nic o @ withum.c o m