Health Care Reform
Eligible NFPs Still Not Claiming Healthcare Tax Credit
A recent study by the Government Accountability Office (GAO) showed that tens of thousands of small nonprofits have still not claimed tax benefits available to them since 2010 through the Patient Protection and Affordable Care Act (Health Care Act). The Health Care Act offers a maximum credit of 25 percent of premiums paid through 2013. In 2014, the maximum credit increases to 35 percent for eligible organizations. Generally, an eligible tax-exempt organization is one that: • pays at least half the cost of single coverage, • employs less than 25 full-time equivalent employees (“FTEs”), and • pays an average annual salary of less than $50,000. For more. Read More.
New Rules Proposed for NFP Hospitals
As the Affordable Care Act (ACA) has been ruled constitutional, many organizations are turning their attention to preparing for the impending changes. For 501(c)(3) organizations, the IRS has issued proposed rules regarding certain additional requirements. The proposed regulations address the requirements that charitable hospitals: establish written financial assistance and emergency medical care policies; limit amounts charged for emergency or other medically necessary care to individuals eligible for assistance under the hospital’s financial assistance policy; and make reasonable efforts to determine whether an individual is eligible for assistance under the hospital’s financial assistance policy before engaging in extraordinary collection actions against the individual. Click here for a pdf describing the full extent of the changes. Comments are due by. Read More.
2010 Health Care Tax Credit Claims Far Below Expected Levels
A study by the Treasury Inspector General for Tax Administration has found that claims for the Small Business Health Care Tax Credit , which includes provisions for nonprofits, were far below expected levels for tax year 2010. The CBO originally estimated up to $2 billion in claims for 2010. As Accounting Today reports, the actual claims totaled just over $278 million, or slightly under 14 percent of expectations. “The Small Business Health Care Tax Credit is an important credit for both small business employers and their employees,” said TIGTA Inspector General J. Russell George in a statement. “TIGTA’s recommendations, once adopted, should improve the IRS’s ability to. Read More.
IRS Issues Guidance for Community Health Needs Assessment, Requests Comments
The IRS is seeking further comment on guidance released for the new community health needs assessment (CHNA) requirements. Part of the Patient Protection and Affordable Care Act ( Health Care Act ), tax-exempt hospitals are required to submit a CHNA as part of their Form 990 , Schedule H for tax years beginning March 23, 2012 and after. The guidance sets forth several provisions for hospital organizations with multiple facilities, methods to conduct a CHNA, penalties for a failure to file, implantation strategies, documentation requirements and effective dates for those provisions. The IRS is also keen to hear from affected parties on the definitions of “hospital facility,” “hospital organization,” and the “community. Read More.
Nonprofit Hospitals Given Extension for Information Reporting
In a recent announcement, the IRS made optional a portion of the Form 990 used by hospitals. Schedule H , Part V, Section B, which deals with mandates from the Patient Protection and Affordable Care Act , is now optional for all tax year 2010 filings. The section deals specifically with reporting on community healed needs assessments, financial assistance policies, billing and collections and medical care charges. The IRS took this action in response to concerns that not enough time was given for hospitals to familiarize themselves with these requirements before accurately reporting on them.
Don’t Let Your Church Miss Out on the Health Care Tax Credit
Your church may be eligible for the Small Business Health Care Tax Credit . The credit, which was part of The Patient Protection and Affordable Care Act , is retroactive to tax years beginning in 2010. Summary of the Small Business Health Care Credit Designed to encourage eligible small employers to offer health insurance coverage to their employees, the refundable credit is available to small employers that pay at least half the cost of single coverage for their employees. The credit is specifically targeted to help small businesses and tax-exempt organizations, including churches, that primarily employ low and moderate income workers. The maximum credit amount is 25 percent of premiums paid for eligible. Read More.