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August 12, 2020
Edition # 10
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Department of Health and Human Services Continuing to Distribute Provider Relief Funds
The U.S. Department of Health and Human Services (HHS) is still in Phase 2 General Distribution of the Provider Relief Fund as part of ongoing efforts to offer financial relief to providers impacted by coronavirus disease 2019 (COVID-19) and has re-opened the portal for accepting applications. Funds remain available to be distributed. If you did not already apply for Phase 2 by the June 3 deadline, the opportunity to apply has re-opened.
Starting Aug. 10, 2020, HHS began again accepting applications from providers who received a payment under Phase 1 General Distribution in order to determine if the provider is eligible for an additional payment.
Who is Eligible?
You may be eligible for another payment if your organization received a payment under the General Distribution and:
- Missed the June 3 deadline to submit your March and April revenue information; or
- Has not received General Distribution payments totaling approximately 2% of your annual revenue.
As part of the application, HHS is collecting tax forms and revenue data in order to determine a payment that is approximately 2% of annual revenue from patient care. If a provider has already received a payment that is approximately 2% of their annual revenue from patient care, they will not receive additional payments.
You must initiate an application and the Taxpayer Identification Number (TIN) verification process by Friday, Aug. 28, 2020 at 11:59 p.m. ET to be considered for payment.
Application Instructions
The application instructions and sample application form are available at hhs.gov/providerrelief. The website also includes a step-by-step application guide and FAQs. Download and review all of these documents to help you complete the process through the Provider Relief Fund Application and Attestation Portal.
The Portal has been updated to streamline and simplify the required application data fields. Even if you previously submitted revenue information, you will need to resubmit your information in the new Portal.
Finally, if you are still in consideration for a Phase 1 General Distribution payment, you must receive either a final payment or communication of ineligibility prior to re-applying in the current Portal.
HHS will be hosting a webcast on Aug. 13, 2020 at 3 p.m. ET for potential applicants to review the application process and to have their questions answered. Register here.
Additional Information
For additional information, please call the Provider Support Line at (866) 569-3522; for TTY, dial 711. Hours of operation are 7 a.m. to 10 p.m. Central Time, Monday through Friday. Service staff members are available to provide real-time technical assistance, as well as service and payment support.
Please contact Brenda Wallace, CPA, CMPE, CEO at [email protected] for more information.
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Frequently Asked Questions about Taxation of Provider Relief Payments
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, appropriated $100 billion for the Public Health and Social Services Emergency Fund (Provider Relief Fund). The Paycheck Protection Program and Health Care Enhancement Act, enacted on April 24, 2020, appropriated an additional $75 billion to the Provider Relief Fund. This funding will be used to reimburse eligible health care providers for health care-related expenses or lost revenues that are attributable to the COVID-19 pandemic.
Q1: 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?
A: No. A payment to a business, even if the business is a sole proprietorship, does not qualify as a qualified disaster relief payment under section 139. The payment from the Provider Relief Fund is able to be included in gross income under section 61 of the Code.
Q2: Is a tax-exempt health care provider subject to tax on a payment it receives from the Provider Relief Fund?
A: Generally, no. A health care provider that is described in section 501(c) of the Code generally is exempt from federal income taxation under section 501(a). 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.
Please contact Brenda Wallace, CPA, CMPE, CEO at [email protected] for more information.
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HSC Partnering with HK Financial Services
Harding, Shymanski & Company's (HSC) vision is to deliver real solutions based on our personal relationship with you - all while keeping your long-term goals and wealth management needs at the forefront. Over the past several years, some clients have encouraged us to further expand this approach due to the deep relationships and trust they have with HSC (for which we are extremely grateful and humbled).
Therefore, we are excited to now offer integrated long-term financial planning, wealth management, and retirement plan solutions through a strategic partnership with HK Financial Services (HKFS).
HKFS provides financial planning and wealth management for private clients of their affiliated CPA firms and is:
- Recognized in the industry as a Top 100 RIA in the country by Financial Advisor (FA) Magazine1,
- Included in Accounting Today's Wealth Magnets Billion Dollar Club2,
- And has over $4.1 billion in assets under management3.
This integrated approach to financial planning and wealth management combines the knowledge of your trusted HSC team with the planning skills and deep resources of HKFS advisors based in Evansville and Louisville. The result is an interactive planning program and illustration of your entire financial picture - a process we call Guidance Planning Strategies (GPS). GPS becomes the "Roadmap" that we use to better serve you in achieving your lifetime financial goals.
As always, we want you to be aware of the services and solutions we can provide. With the economic uncertainty, now is an especially critical time to evaluate your financial plans. We look forward to sharing more about GPS and our integrated approach to financial planning the next time we connect.
Please contact Brenda Wallace, CPA, CMPE, CEO at [email protected] for more information.
1 FA Magazine dated 07/2019
2 Accounting Today dated 07/2019
3 'Regulatory' assets under management (as reported on HKFS 12/31/2019 Form ADV Part 1A filing) at $4.1 billion.
Investment advisory services offered through HK Financial Services (HKFS), an Independent Registered Investment Adviser. Commission-based securities products are sold by ProEquities registered representatives and offered through ProEquities, Inc., a Registered Broker-Dealer and Member FINRA and SIPC. HKFS, ProEquities, and Harding, Shymanski, & Company are unrelated entities. Neither HKFS nor ProEquities offer accounting, tax or legal services.
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Disclaimer: The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not, intended to provide legal, tax or accounting advice.
Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed.
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Harding, Shymanski & Company, P.S.C.
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