But if the transaction is an asset purchase (whether for some or all of the Provider Relief Fund recipient's assets), then the original recipient must use the funds for its eligible expenses and lost revenues and return any unused funds to HHS. The HHS Provider Relief Fund payments data is displayed in an interactive map, state-summary table and in an interactive details table. More revisions to the FAQs are possible and could further impact tax liability. Aprio, LLP 2023. In a recent blog post, the Taxpayer Advocate Service (TAS) asserts that under Treasury Regulation 1.6662-4(d)(3)(iii), IRS press releases and statements meet the standard of substantial authority, suggesting taxpayers may rely on the guidance included in FAQs provided at the time of filing or the end of the year. Failure by a provider that received a payment to comply with any term or condition can result in action by HHS to recover some or all of the payment. Reporting Entities that previously reported will be able to choose a different methodology for calculating lost revenues during Reporting Period 2 and any subsequent reporting periods. What other programs can help me? Yes. HHS is using Phase Four to reimburse small providers that have lower operating margins and serve vulnerable communities at higher rates, as well as bonus payments to providers serving Medicaid, CHIP, or Medicare populations with lower incomes and higher complex medical needs. Recipients (both non-federal entities and commercial organizations) of the General and Targeted Distributions of the Provider Relief Fund are subject to 45 CFR 75 Subpart A (Acronyms and Definitions) and B (General Provisions), subsections 75.303 (Internal Controls), and 75.351-.353 (Subrecipient Monitoring and Management), and Subpart F (Audit Requirements). technology solutions for global tax compliance and decision Provider Relief Fund payment amounts that have not been fully expended on health care expenses or lost revenues attributable to coronavirus by the deadline to use funds that corresponds to the Payment Received Period must be returned to HHS. The Provider Relief Fund provisions of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") created a $100 billion fund to reimburse eligible health care providers for health care-related expenses or lost revenues attributable to the COVID-19 pandemic. Examples of costs incurred for an entity using accrual accounting, during the Period of Availability include: For purchases of tangible items made using ARP Rural payments, the purchase does not need to be in the providers possession (i.e., back ordered PPE, ambulance, etc.) Whats Hot on Checkpoint for Federal & State Tax Professionals? The IRS has indicated that PRF distributions are required to be treated as taxable income by the recipient. Additional reporting information will be forthcoming for impacted providers. Additionally, the opportunity to apply Provider Relief Fund payments (excluding the Nursing Home Infection Control Distribution) and ARP Rural payments for lost revenues will be available only until the conclusion of the quarter in which the Public Health Emergency expires. industry questions. Per the Terms and Conditions, all recipients will be required to submit documents to substantiate that these funds were used for health care-related expenses or lost revenues attributable to coronavirus, and that those expenses or lost revenues were not reimbursed from other sources and other sources were not obligated to reimburse them. to be considered an eligible expense but the costs must be incurred by the end of the Period of Availability. The Terms and Conditions place restrictions on how the funds can be used. The Reporting Entity will be required to submit a justification for the change. Receive the latest updates from the Secretary, Blogs, and News Releases. Provider Relief Fund payments that were made incorrectly, or exceed lost revenues or expenses due to coronavirus, or do not otherwise meet applicable legal and program requirements must be returned to HHS, and HHS is authorized to recover these funds. Currently, the AOA is working to ensure past and future HHS Provider Relief Funds are not treated as taxable income, and potential legislation to address this matter is forthcoming. The first FAQ addressed the issue of taxation for for-profit health care providers. Nonetheless, a payment received by a tax-exempt health care provider from the Provider Relief Fund may be subject to tax under section 511 if the payment reimburses the provider for expenses or lost revenue attributable to an unrelated trade or business as defined in section 513. Lost your password? Lost revenues attributable to the coronavirus may include other income not derived from delivery of health care services that has been customarily used to support the delivery of health care services by the recipient. Organizations often struggle with the concept of lost revenue. Relief Payments issued to for-profit healthcare providers are includible in gross income under 26 U . For more information about lost revenues, please reviewHRSAs Lost Revenues Guide (PDF - 328 KB). Mail a refund check for the full amount payable to "UnitedHealth Group" to the address below. For projects that are a bundle of services and purchases of tangible items that cannot be separated, such as capital projects, construction projects, or alteration and renovation projects, the project costs cannot be reimbursed using Provider Relief Fund payments unless the project was fully completed by the end of Period of Availability associated with the Payment Received Period. Exemption for COVID-19 Relief Benefits . Providers may not use ARP Rural payments to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse. For more information, please review HRSAsPhase 4 and ARP Rural Reconsiderationspage. The "statutory provisions" listed in the Terms and Conditions apply to the Provider Relief Fund payment associated with those Terms and Conditions. HHS is authorized to recover any Provider Relief Fund payment amounts that were made in error, exceed lost revenue or expenses due to coronavirus, or do not otherwise meet applicable legal and program requirements. The Terms and Conditions place restrictions on how the funds can be used. Holland & Hart, 800 W Main Street, Suite 1750, Boise, ID 83702. phone: 208-383-3913. Examples of costs incurred for an entity using accrual accounting, during the Period of Availability include: For purchases of tangible items made using PRF payments, the purchase does not need to be in the providers possession (i.e., back ordered PPE, ambulance, etc.) May a health care provider that receives a payment from the Provider Relief Fund exclude this payment from gross income as a qualified disaster relief payment under section 139 of the Internal Revenue Code (Code)? Those statutory provisions may also independently apply to other government funding that you receive. A presumptive case of COVID-19 is a case where a patient's medical record documentation supports a diagnosis of COVID-19, even if the patient does not have a positive in vitro diagnostic test result in his or her medical record. If governments use Fund payments as described in the Fund Guidance to establish a grant program to support businesses, would those funds be considered gross income taxable to a business receiving the grant under the Internal Revenue Code (Code)? Providers accepting the Provider Relief Fund payment should submit a claim to the patients health insurer for their services. PO Box 31376 This dataset represents the list of providers that received a payment from the Provider Relief Fund and who have attested to receiving one or more payments and agreed to the Terms and Conditions. No. At this time, HHS will not reissue returned payments to the new owners. Provider Relief Fund payments must be used to cover healthcare related expenses have received Provider Relief Funds as of the revised date of these sections. Other Terms and Conditions apply to a longer time period, for example, regarding maintaining all records pertaining to expenditures under the Provider Relief Fund payment for three years from the date of the final expenditure. $10 billion set aside for additional EIDL, tax changes. HHS is authorized to recover any Provider Relief Fund amounts that were made incorrectly or exceed lost revenues or expenses due to coronavirus, or do not otherwise meet applicable legal and program requirements. March 31, 2022, the end of the second reporting period for providers receiving one or more PRF payments exceeding $10,000 in aggregate between July 1 and December 31, 2020. Aprio has tax specialists standing by who can assist with your questions and tax filing preparations. If a provider receives a payment that is greater than expected and believes the payment was made incorrectly, the provider should contact the Provider Support Line at 866-569-3522 (for TYY, dial 711) and seek clarification. You will receive mail with link to set new password. No. For more information, visit theInternal Revenue Services' website. Step 2: Indicate whether you are completing on behalf of an individual or business and enter the following information.Business Name Field:Legal name of organization that received the paymentInvoice or Ticket Number Field:"HHS-COVID-Interest"Contract/Agreement Number Field:Tax Identification Number (TIN) of organization or provider that received the paymentPoint of contact:Business contact informationPayment Amount:(The payment amount must match the interest earned on the payment received.) Intuit Professional Tax Preparation Software | Intuit Accountants For Providers. All providers retaining funds must sign an attestation and accept the Terms and Conditions associated with payment. The parent organization can allocate funds at its discretion to its subsidiaries. policy, Privacy If you affirmatively attested to a Provider Relief Fund payment already received and later wish to reject those funds and retract your attestation, you may do so by calling the provider support line at (866) 569-3522; for TTY dial 711. (Updated 8/4/2020). (HHS). Updated April 7, 2020 The Department of Health and Human Services on April 10 began distributing $30 billion in funds from the new $100 billion Public Health and Social Services Emergency Fund created by the CARES Act. > News The Provider Relief Fund Terms and Conditions and legal requirements authorize HHS to audit Provider Relief Fund recipients now or in the future to ensure that program requirements are met. The parent organization may allocate the Targeted Distribution up to its pro rata ownership share of the subsidiary to any of its other subsidiaries that are eligible health care providers. April 5, 2022, the deadline for vaccination claims under either the Uninsured Program and the Coverage Assistance Fund due to insufficient funds. Recipients of funding must still comply with the Terms and Conditions related to permissible uses of Provider Relief Fund payments. If the current TIN owner has not yet received any payment from the Provider Relief Fund, it may still receive funds in other distributions. Yes. Washington, D.C. 20201 They do not qualify as disaster relief payments under Section 139. The U.S. Department of Health and Human Services (HHS), through the Health Resources and Services Administration (HRSA), is making more than $2 billion in Provider Relief Fund (PRF) Phase 4 General Distribution payments to more than 7,600 providers across the country this week. Although initially $100 billion was provided to prevent, prepare for, and respond to the coronavirus domestically and internally, that amount was increased by $78 billion in two subsequent pieces of legislation. HHS may be able to offer additional support . Providers that received funds in calendar year 2021 have through December 31, 2022 to incur eligible expenses and may apply the payment to lost revenues incurred since January 1, 2020. Brian S. Werfel, Esq. Many states also used funds to help . Here's the core problem: The CARES Act . Providers that affirmatively attest through the Payment Attestation Portal or that retain the funds past 90 days, but do not attest, will be included in the public release of providers and payments. With todays payments, approximately 89 percent of all Phase 4 applications have been processed. 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