Python Notes for mca i year students osmania university.docx
Phila hfma may 26 2011 s mariani
1. A CLOSER LOOK
Healthcare Tax Update
BY SCOTT J. MARIANI, JD ,PARTNER
PRACTICE LEADER, HEALTHCARE SERVICES GROUP
MAY 26, 2011
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2. Part I
Extension of President Bush Tax Cuts
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3. EXPIRING FEDERAL TAX PROVISIONS EFFECTIVE
DECEMBER 31, 2010 – EXTENDED TO 2013
Individual Income Tax Rates
• Starting in 2013, the marginal Federal
Individual Income tax rates for the top two
brackets rise from 33% and 35% back to the
year 2000 levels of 36% and 39.6%;
respectively.
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4. EXPIRING FEDERAL TAX PROVISIONS EFFECTIVE
DECEMBER 31, 2010 – EXTENDED TO 2013
Dividend Tax Rate
• Starting in 2013 qualified dividends are no
longer taxed at a rate of 15% and return to
being taxed as ordinary income.
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5. EXPIRING FEDERAL TAX PROVISIONS EFFECTIVE
DECEMBER 31, 2010 – EXTENDED TO 2013
Capital Gains Tax Rate
• Starting in 2013 long term capital gains tax
rate increases from 15% to 20%.
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6. EXPIRING FEDERAL TAX PROVISIONS EFFECTIVE
DECEMBER 31, 2010 – EXTENDED TO 2013
Child Tax Credit
• Starting in 2013 the child tax credit for
eligible households returns to $500 per child
from $1,000.
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7. EXPIRING FEDERAL TAX PROVISIONS EFFECTIVE
DECEMBER 31, 2010 – EXTENDED TO 2013
Dependent Care Tax Credit
• Starting in 2013 the dollar amount limit for
creditable expenses is reduced from $3,000
to $2,400 ($6,000 to $4,800 for 2 or more
children), thus reducing the credit.
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8. EXPIRING FEDERAL TAX PROVISIONS EFFECTIVE
DECEMBER 31, 2010 – EXTENDED TO 2013
Effective December 31, 2012 there are 64
additional Federal tax provisions due to expire.
Stay tuned, Presidential election in November,
2012.
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9. YEAR 2013 TAX INCREASE EXAMPLE
Married filing joint $500K ordinary wages, $100K
dividends from US Corporation and $100K of
stock capital gains.
Ordinary wages – 35% to 36/39.6%
Dividend income - marginal rate - 15% to
39.6%
LT Capital Gains 15% to 20%
FIT approximately $175K to $221K
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10. Part II
Form 990, Return Of An Organization Exempt From Income Tax
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11. FORM 990-EZ – TRANSITIONAL RELIEF
May file 990-EZ for: If gross receipts are: And if assets are:
2008 Form (generally <$1,000,000 <$2,500,000
filed in 2009)
2009 Form (generally <$500,000 <$1,250,000
filed in 2010
2010 and later Forms <$200,000 <$500,000
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12. 2010 FORM 990, PART XI
Reconciliation of Net Assets
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13. 2010 FORM 990, SCHEDULES
New narrative parts have been added to
Schedules E, G, K, L and R. No longer utilize
Schedule O for these schedules.
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14. FORM 990
Who’s looking at your Form 990 and why?
IRS
State taxing authority
Employees – current & former
Newspapers
Competitors
Unions
The General Public; including donors
www.guidestar.org
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15. JEOPARDY! NFP ORGANIZATIONS
Base compensation: $1,423,685
Bonus and incentive compensation: $3,514,305
Other compensation: $ 171,175
Total Form W-2 Box 5, Medicare wages:
$5,109,165
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16. JEOPARDY! NFP ORGANIZATIONS
Deferred compensation: $94,844
Nontaxable benefits: $21,339
Total Compensation: $5,225,348
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17. JEOPARDY! NFP ORGANIZATIONS
Perquisites
First class or charter travel
Travel for companions
Health or social club dues or initiation fees
Personal services
Who is the commissioner of the PGA Tour?
Source 2009 Form 990 PGA Tour, Inc.; GuideStar
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18. JEOPARDY! NFP ORGANIZATIONS
Base compensation: $2,900,000
Bonus and incentive compensation: $6,550,000
Other compensation: $309,000
Total Form W-2 Box 5, Medicare wages:
$9,759,000
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19. JEOPARDY! NFP ORGANIZATIONS
Deferred compensation: $0
Nontaxable benefits: $65,000
Total Compensation: $9,824,000
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20. JEOPARDY! NFP ORGANIZATIONS
Perquisites
First class or charter travel
Travel for companions
Tax indemnification and gross-up payments
Housing allowance or residence for personal
use
Who is the commissioner of the NFL?
Source 2009 Form 990 NFL Management Council;
GuideStar
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21. JEOPARDY! NFP ORGANIZATIONS
Base compensation: $3,000,000
Bonus and incentive compensation: $8,500,000
Other compensation: $312,102
Total Form W-2 Box 5, Medicare wages:
$11,812,102
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22. JEOPARDY! NFP ORGANIZATIONS
Deferred compensation: $0
Nontaxable benefits: $19,014
Total Compensation: $11,831,116
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23. JEOPARDY! NFP ORGANIZATIONS
Perquisites
First class or charter travel
Highest paid I/C for services
Steve A. Fehr, Legal Counsel, $606,351
Who is the head of the MLB player’s union?
Source 2009 Form 990 Major League Baseball
Players Association; GuideStar
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24. COMPENSATION AND FORM 990
“It is very important to reconcile from total gross
compensation to Form W-2, Box 5, Medicare
wages.”
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25. STATEMENT OF FACT
"The IRS EO division will never stop looking at NFP
executive compensation and benefits."
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26. SCHEDULE H, PART I, COMMUNITY BENEFIT
Community Benefit
1. AHA versus CHA model (excludes bad debt
at cost and Medicare shortfall)
2. Schedule H, Part III reports bad debt and
Medicare shortfall. Also asks for why you
feel bad debt and Medicare shortfall
should be treated as community benefit.
3. Costs not charges
4. Senate Finance Committee – 5% Test
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27. SCHEDULE H, PART I, COMMUNITY BENEFIT
5. Categories of Community Benefit
a. Charity care and Medicaid shortfall
b. Community Health Programs and
Services
c. Health Professions Education
d. Subsidized Health Services
e. Research
f. Cash and in-kind contributions
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28. SCHEDULE H, PART I, COMMUNITY BENEFIT
1. What are we seeing?
a. Charity care, Medicaid short fall and
medical residency programs are “big
drivers”.
b. CB percentages ranging from 2% - 15.2%.
c. Majority in the 6 – 9% range
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29. 2009 FORM 990, SCHEDULE H - REGIONAL
INFO
AtlantiCare Regional Medical Center
Net community benefit costs: $48,199,394
Community benefit percentage: 8.95%
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30. 2009 FORM 990, SCHEDULE H - REGIONAL
INFO
Capital Health System
Net community benefit costs: $27,984,615
Community benefit percentage: 6.25%
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31. 2009 FORM 990, SCHEDULE H - REGIONAL
INFO
Cooper Health System
Net community benefit costs: $66,199,022
Community benefit percentage: 9.36%
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32. 2009 FORM 990, SCHEDULE H - REGIONAL
INFO
Kennedy University Hospital
Net community benefit costs: $28,198,629
Community benefit percentage: 6.4%
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33. 2009 FORM 990, SCHEDULE H - REGIONAL
INFO
South Jersey Health System
Net community benefit costs: $39,088,468
Community benefit percentage: 11.98%
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34. 2009 FORM 990, SCHEDULE H - REGIONAL
INFO
Virtua West Jersey Hospital - Camden
Net community benefit costs: $53,219,949
Community benefit percentage: 9.43%
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35. 2009 FORM 990, SCHEDULE H - REGIONAL
INFO
Virtua Memorial Hospital
Net community benefit costs: $22,964,428
Community benefit percentage: 8.15%
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36. 2009 FORM 990, SCHEDULE H – NATIONAL
INFO
Robert Wood Johnson University Hospital, New
Jersey
Net community benefit costs: $57,429,074
Community benefit percentage: 8.57%
Revenue less expenses: $32,800,937
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37. 2009 FORM 990, SCHEDULE H – NATIONAL
INFO
The New York and Presbyterian Hospital, New
York
Net community benefit costs: $454,879,634
Community benefit percentage: 14.68%
Revenue less expenses: $152,846,986
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38. 2009 FORM 990, SCHEDULE H – NATIONAL
INFO
North Shore University Hospital - Manhasset, New
York
Net community benefit costs: $128,059,114
Community benefit percentage: 9.33%
Revenue less expenses: $87,174,848
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39. 2009 FORM 990, SCHEDULE H – NATIONAL
INFO
The Cleveland Clinic Foundation, Ohio
Net community benefit costs: $486,070,980
Community benefit percentage: 14.45%
Revenue less expenses: $274,420,332
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40. 2009 FORM 990, SCHEDULE H – NATIONAL
INFO
Mayo Clinic, Minnesota
Net community benefit costs: $761,338,867
Community benefit percentage: 29.23%
Revenue less expenses: ($25,984,493)
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41. 2009 FORM 990, SCHEDULE H - OBSERVATION
"Not all institutions are applying the current rules
uniformly. There are many gray areas and not
bright line criteria for inclusions and exclusions."
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42. 2009 FORM 990, SCHEDULE H - CONSIDERATION
Mandatory review by IRS of every hospital's
schedule H once every three years. What do
your schedule H workpapers look like?
IRS – Will not take exam form.
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43. HOSPITAL – TAX EXEMPTION
Community Benefit Standard, Rev. Rul.69-545
Charity Care Standard, Rev.Rul.56-185
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44. GROUP EXEMPTION RULINGS
The IRS does not like them.
Original draft of new Form 990 prohibited
them.
IRS review and approval time is extremely slow,
approximately 12-14 months.
Results in 2 separate Forms 990.
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45. GROUP EXEMPTION RULINGS
Entities must give up their own separate tax-
exempt status and IRS determination letter;
may have to re-apply for tax-exempt status if
the organization wants to file its own separate
Form 990 again prospectively.
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46. GROUP EXEMPTION RULINGS
Part VII of core Form 990 BOT's gets very long
and redundant, utilize schedule O.
Combined Schedule H, including community
benefit percentage, except for Part V.
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47. GROUP EXEMPTION RULINGS
Reduction in disclosure of Top 5 highest paid
employees after your officers and key
employees.
New entities do not need to file a Form 1023,
Application for Tax-Exemption.
Annual group exemption letter update to IRS
90 days prior to end of year.
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48. Part II
Patient Protection and Affordable Care Act (PPACA) March 2010
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49. HOSPITAL REQUIREMENTS - PPACA
New IRC Section 501(r) as part of the PPACA.
Four new hospital requirements.
Effective date, tax years beginning after
March 23, 2010 (July 1, 2010 through June 30,
2011).
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50. HOSPITAL REQUIREMENTS - PPACA
IRS guidance still forthcoming.
“2010 Schedule H too burdensome,” April 20,
2011 AHA, HFMA, and VHA letter to the IRS.
Exception: mandatory CHNA (July 1, 2012
through June 30, 2013).
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51. HOSPITAL REQUIREMENTS - PPACA
Facility by facility basis, multiple hospitals, one
Federal tax id #.
Attach your audited financial statements to
your hospital Form 990.
Mandatory review by the IRS of every
Schedule H once every 3 years.
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52. 1. COMMUNITY HEALTH-NEEDS ASSESSMENT
Each hospital must have conducted either a
community health-needs assessment
(“CHNA”) in the taxable year or in either of the
two taxable years immediately preceding the
taxable year.
Applicable to 6/30/2013 Forms 990.
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53. 1. COMMUNITY HEALTH-NEEDS ASSESSMENT
Each hospital
• adopt an implementation strategy for
meeting the community health needs
identified in the assessment;
• the CHNA must take into account input from a
broad cross section of the community served
by the hospital, including those with special
knowledge of or expertise in public health;
and
• the CHNA must be made available to the
general public. 53
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54. 2. FINANCIAL ASSISTANCE POLICY (“FAP”)
Each hospital must adopt and make widely
available a written FAP:
• First:
► Eligibility criteria for financial assistance
and whether such assistance includes
free or discounted care;
► The basis for calculating amounts
charged to patients;
► The method for applying for financial
assistance; and
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55. 2. FINANCIAL ASSISTANCE POLICY (“FAP”)
► For hospitals that do not have a separate
billing and collections policy, a statement
of the collection-related actions the
hospital may take in connection with non-
payment;
► How the hospital will widely publicize the
policy within the community it serves.
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56. 2. FINANCIAL ASSISTANCE POLICY (“FAP”)
• Second:
► Each hospital must commit to provide
non-discriminatory emergency care,
regardless of whether the individual is
eligible for financial assistance under the
hospital’s FAP.
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57. 3. LIMITATION ON PATIENT CHARGES
Each hospital must limit the charges for
emergency or other medically necessary care
provided to patients eligible for financial
assistance under its FAP to not more than the
lowest amounts charged to patients who
currently have insurance covering such care.
Each hospital is also prohibited from using
gross charges.
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58. 4. LIMITATION ON COLLECTION EFFORTS
A hospital may not carry out “extraordinary
collection actions” until it has made
“reasonable efforts” to determine whether a
patient is eligible for assistance under the
hospital’s FAP.
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59. 4. LIMITATION ON COLLECTION EFFORTS
The definition of “reasonable efforts” is to be
determined by subsequent regulation,
although presumably the latter would include
notification to patients of the written financial
policy upon admission, in the bill, and by
subsequent telephone calls.
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60. SCHEDULE H, PART V, FACILITY INFORMATION
Section A, Hospital Facilities, by total revenue
Section B, Facility Policies and Practices (for
each facility listed in Part V, Section A)
1.Community health needs assessment,
questions 1-7
2.Financial assistance policy, questions 8-13
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61. SCHEDULE H, PART V, FACILITY INFORMATION
Section B (continued)
3. Billing and collections, questions 14-17
4. Emergency medical care, question 18
5. Charges for medical care policy, questions
19-21
Section C, Non-hospital facilities, by total
revenue
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62. MAJOR TAX PROVISIONS - 2012
Certain businesses must begin reporting the
value of health care benefits on employees’
Form W-2 statements.
New Form 1099 tax information reporting is
required for businesses making in excess of $600
over the course of a calendar year to
corporations. Repealed April 2011.
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63. 2012 FORM W-2 HEALTH CARE REPORTING
IRS provides interim guidance - April 2011
New reporting has no tax ramifications.
"To provide useful and comparable consumer
information to employees."
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64. 2012 FORM W-2 HEALTH CARE REPORTING
Aggregate cost of employer sponsored health
care coverage.
Aggregate cost exclusions.
ER sponsored health care coverage
exclusions.
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65. 2012 FORM W-2 HEALTH CARE REPORTING
Relief for small employers
(less than 250 Forms W-2 in the prior year)
Terminated employees
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66. MAJOR TAX PROVISIONS - 2013
A new 0.9% surtax will be added to the 1.45%
Hospital Insurance (Medicare) payroll taxes
paid by individuals earning more than $200,000
per year ($250,000 for joint filers). Subject to
payroll withholding.
New IRS Code Section 1411 imposes a 3.8% tax
on unearned income of individuals earning
more than $200,000 per year ($250,000 for joint
filers).
Contributions to health care FSA’s limited to
$2,500 as of 1/1/2013.
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67. MAJOR TAX PROVISIONS - 2014
U.S. citizens and legal residents are required to
maintain “minimum essential coverage”.
Penalty is the greater of $95 or 1% of the
taxpayer’s income over the threshold amount
of income required for income tax return filing.
2015 - $325 or 2%
2016 - $695 or 2.5%
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68. MAJOR TAX PROVISIONS - 2018
A 40% excise tax on high-cost health insurance
plans goes into effect. The tax, paid by
insurers or self-insured firms, is on the amount in
excess of $10,200 for individuals and $27,500
for families.
Health cost adjustment percentage –
between 2010 and 2018.
Excise tax is not tax deductible.
Excise tax passed to the consumers.
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69. Part IV
IRS Employment Tax Initiative
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70. IRS EMPLOYMENT TAX INITIATIVE
Announced in 2009
6,000 U.S. taxpayers over 3 years
Originally 10-15% NFP organizations
Revised to 25% NFP organizations
Started in March 2010
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71. EMPLOYMENT TAX ISSUES
Form W-2 and Form 1099 to the same
individual
Worker misclassification
Improper treatment of fringe benefits
Review of travel/entertainment expenses –
corporate credit cards
FICA exempt individuals
Back-up withholding tax; no Forms 1099/W-9 71
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72. EMPLOYMENT TAX ISSUES
Excess Benefit Transactions:
1. IRC Section 4958 – Intermediate Sanctions
a. Enacted in 1996, TBOR-2
b. Alternative to revocation of tax-exempt
status
2. Applies to certain transactions between IRC
501(c)(3) and IRC Section 501(c)(4)
organizations and a “disqualified person.”
3. Generally, a non-FMV transaction.
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73. IRS EMPLOYMENT TAX INITIATIVE –
ACTION STEPS
1. Perform a self-assessment
2. Consider voluntary compliance filing with the
IRS
3. Be proactive as part of your organization’s
overall tax compliance program
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74. SELF-ASSESSMENT; EMPLOYMENT TAXES
1. A review of all senior management fringe
benefits for imputation on Form W-2; including
a review of the company corporate credit
card, meals and entertainment and back-up
documentation.
2. A comparison of all employee social security
numbers to the accounts payable paid file
and Forms 1099 issued.
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75. SELF-ASSESSMENT; EMPLOYMENT TAXES
3. A review of all individuals who were paid as
an independent contractor for proper worker
classification determination between
employee or independent contractor.
4. A written policy and procedure should be
prepared with respect to worker
determination between employee or
independent contractor.
5. A review to ensure that a completed Form W-
9 is on file for all vendors and independent
contractors.
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76. SELF-ASSESSMENT; EMPLOYMENT TAXES
6. A review of all “non-1099 required” vendors to
determine if a Form 1099 should have been
issued under current IRS rules and regulations.
7. A written accounts payable policy should be
prepared applicable to all vendors, including
obtaining a completed Form W-9 and
determining whether or not a Form 1099 is
required prior to processing payment.
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77. Part V
Accountable Care Organizations
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78. ACCOUNTABLE CARE ORGANIZATIONS
("ACO'S")
IRS Notice 2011-20 issued March 31, 2011
Soliciting comments until May 31, 2011
Private inurement and private benefit
Unrelated business income ("UBI")
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79. ACCOUNTABLE CARE ORGANIZATIONS
("ACO'S")
Whether IRC Section 501(c)(3) hospitals and
other tax-exempt healthcare organizations
participating in the Medicare Shared Savings
Program (“MSSP”) through an ACO may be
impacted by current limitations placed on
such organizations under the IRS. Case-by-
case basis, based on all the facts and
circumstances.
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80. PARTICIPATION IN AN ACO
A tax-exempt hospital's participation in an ACO
may include:
1. membership in a nonprofit corporation;
2. ownership of shares in a corporation;
3. ownership of an interest in a partnership or an
LLC; and
4. contractual arrangements with the ACO
and/or its other participants.
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81. CMS REGULATION AND OVERSIGHT
A tax-exempt hospital's participation in an ACO
will not result in private inurement or private
benefit if the following factors are met:
1. The terms of the tax-exempt hospital's
participation in the MSSP through the ACO
(including its share of MSSP payments or losses
and expenses) are set forth in advance in a
written agreement negotiated at arm's
length.
2. CMS has accepted the ACO into and has not
terminated the ACO from the MSSP.
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82. CMS REGULATION AND OVERSIGHT
3. The tax-exempt hospital's share of economic
benefits derived from the ACO (including its
share of MSSP payments) is proportional to the
benefits or contributions the hospital provides
to the ACO.
4. The ownership interest received by the tax-
exempt hospital, if any, is proportional and
equal in value to its capital contributions to
the ACO. All ACO returns of capital,
allocations, and distributions are made in
proportion to such ownership interest.
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83. CMS REGULATION AND OVERSIGHT
5. The tax-exempt hospital's share of the ACO's
losses (including its share of MSSP losses) does
not exceed the share of ACO economic
benefits to which the hospital is entitled.
6. All contracts and transactions entered into by
the tax-exempt hospital with the ACO and
the ACO's participants, and by the ACO with
the ACO's participants and any other parties,
are at fair market value.
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84. UNRELATED BUSINESS INCOME TAX
Whether the participation of a tax-exempt
hospital in an ACO and its share of the
activities generating the MSSP payments are
substantially related to the performance of the
tax-exempt hospital's charitable purposes?
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85. UNRELATED BUSINESS INCOME TAX
IRS, absent any private inurement or private
benefit, and as long as the ACO meets all of
the eligibility requirements established by CMS
for participation in the MSSP, it expects that
any MSSP payments received by the tax-
exempt hospital from an ACO would derive
from activities that are substantially related to
the performance of the charitable purpose of
"lessening the burdens of government."
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86. NON-MSSP ACTIVITIES OF THE ACO
ACO conducts activities outside of MSSP (such
as entering into and operating under shared
savings arrangements with other types of
health insurance payors).
Unlikely lessens the burdens of government.
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87. NON-MSSP ACTIVITIES OF THE ACO
IRS views any negotiation with private health
insurers on behalf of unrelated parties as
generally not a charitable activity, regardless
of whether such an agreement involves a
program aimed at achieving cost savings in
healthcare delivery.
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88. NON-MSSP ACTIVITIES OF THE ACO
Certain non-MSSP activities may further or be
substantially related to an exempt purpose of
the tax-exempt hospital. An example would
be an ACO participating in shared savings
arrangements with Medicaid, which may
further the charitable purpose of relieving the
poor or underprivileged.
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89. Part VI
Nonprofit Health Insurance Insurers
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90. NONPROFIT HEALTH INSURANCE INSURERS
PPACA requires DHHS to establish a Consumer
Operated and Oriented Plan ("CO-OP")
program to foster the creation of qualified non
profit health insurance issuers to offer qualified
health plans in individual and small group
markets. The CO-OP program is intended to
make grants or loans to qualified nonprofit
health insurance issuers.
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91. NONPROFIT HEALTH INSURANCE INSURERS
New IRC Section 501(c)(29) as part of the
PPACA
IRS Notice 2011-23 issued March 11, 2011
Soliciting comments until May 27, 2011
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92. WHAT IS A NONPROFIT HEALTH INSURANCE
ISSUER?
An organization:
That is organized as a nonprofit, member
corporation under state law.
Which substantially all of the activities of which
consist of the issuance of qualified health
plans in the individual and small group markets
in each state in which it is licensed to issue
such plans; and
That meets various additional requirements as
follows.
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93. QUALIFICATION CONDITIONS
The organization must have received a grant
or loan under the CO-OP program and be in
compliance with the requirements of PPACA
§1322 and the terms of its loan or grant under
the CO-OP program.
The organization must have given notice to
the secretary of the Treasury in the manner
prescribed by (not yet issued) regulations that
it is applying for recognition of its exempt
status as an organization described in IRC
Section 501(c)(29);
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94. QUALIFICATION CONDITIONS
No part of the organization's net earnings can
inure to the benefit of any private shareholder
or individual , except as provided in narrow
exceptions listed in PPACA § 1322 (c)(4)
(which requires the issuer’s profits to be used to
lower premiums, improve benefits, or for other
programs intended to improve the quality of
health care delivered to the organization’s
members).
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95. QUALIFICATION CONDITIONS
No substantial part of the organization's
activities can consist of attempting to
influence legislation, and the organization
cannot participate in, or intervene in, any
political campaign.
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96. QUALIFICATION CONDITIONS
Qualified nonprofit health insurance issuers will
be required to file an annual information return
and provide certain specified information,
including the amount of reserves required by
each state in which the organization is
licensed to issue qualified health plans and the
amount of reserves on hand.
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97. NONPROFIT HEALTH INSURANCE INSURERS
May apply to IRS for tax-exempt status
Failure to apply or if tax-exempt status is
revoked may result in taxation as an insurance
company
The IRS is currently not accepting applications
for recognition as a tax-exempt organization,
Form 1023
Traditional IRC section 501(c)(3) principles
apply
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98. Part VII
Foreign reporting Form 90-22.1, Report of Foreign Bank and
Financial Accounts
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99. WHO MUST FILE
A U.S. person must file a FBAR if that person has a
financial interest in, signature authority or other
authority over any financial account in a
foreign country and the aggregate value of
these account(s) exceeds $10,000 at any time
during the calendar year.
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100. FINANCIAL INTEREST DEFINED
Financial interest includes accounts for which
the U.S. person is the owner of record or has
legal title, whether the account is maintained
on his or her own benefit or for the benefit of
others including non-United States persons.
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101. FINANCIAL INTEREST DEFINED
Financial interest also includes accounts
where the owner of record or holder of legal
title is a person acting as an agent, nominee,
or in some other capacity on behalf of a U.S.
person.
Financial interest in an account also includes a
corporation in which a U.S. person directly or
indirectly owns more than 50 percent of the
total value of the shares of stock.
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102. SIGNATURE AUTHORITY DEFINED
A U.S. person has account authority over an
account if that person can control the
disposition of money or other property in the
account by delivery of a document
containing his/her signature to the bank or
other person with whom the account is
maintained.
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103. TYPICAL FORM 90-22.1 FILERS
The owner of the foreign captive (e.g.
hospital)
Certain officers of the owner (e.g. hospital
CEO and CFO)
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104. OTHER CONSIDERATIONS
The owner of the captive may have other filing
requirements, Forms 5471 and 926
Form 990, schedule F, Statement of Activities
Outside the U.S.
Form 990, schedule R, Related Organizations
Primary activity: Financial vehicle, not
insurance
Individuals who file Form 90-22.1 also must
disclose on their Form 1040, schedule B
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105. DUE DATE AND RECORDKEEPING
Filed with U.S. Treasury on or before June 30th.
FBAR records should be maintained 5 years
from June 30th.
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106. Part VIII
Other IRS EO Issues
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107. OTHER IRS EO ISSUES
Proposed regulations - disclosure to State
officials regarding tax-exempt organizations.
990-N e-postcard and automatic revocation.
Elimination of advanced ruling process for
501(c)(3) public charities.
Draft executive order could expand donor
disclosures.
Cell phone legislation.
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108. OTHER IRS EO ISSUES
2011 EO Work Plan:
Executive Compensation.
Supporting Organizations.
Medical resident FICA.
Gaming Non-Filer Project.
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109. OTHER IRS EO ISSUES
2011 EO Work Plan (continued):
Governance Check Sheet, Form 14114.
Controlling Organizations.
Charitable Spending.
Colleges and Universities.
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110. THANK YOU!
Scott J. Mariani, JD, Partner
WithumSmith+Brown, PC
465 South Street
Suite 200
Morristown, NJ 07960
973-532-8835
smariani@withum.com
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