If you’re a mental health professional with a private practice, please consider applying for the HHS Provider Relief Fund Subsidy equal to 2% of gross private practice revenue as reported on your most recently filed tax return.?The deadline to apply is 9/13.
** A self-employed therapist with gross revenue of?$350,000?would qualify for $7,000 subsidy. **
Are You Eligible?
It’s our understanding that some mental health practitioners can apply for this HHS sponsored subsidy.? More info?can be found at: https://www.hhs.gov/coronavirus/cares-act-provider-relief-fund/for-providers/index.html.?According to the instructions:
To be eligible to apply, the applicant must have?either:
- Billed Medicare fee-for-service?during the period of Jan.1, 2019-Dec. 31, 2019; or
- Be a Medicare Part A provider that experienced a change in ownership?and billed Medicare fee-for-service in 2019 or 2020 that prevented the otherwise eligible provider from receiving Phase 1 General Distribution payment; or
- Billed Medicaid / CHIP programs or Medicaid managed care plans?for health-related services between Jan. 1, 2018 ? Dec. 31, 2019
Plus, HHS provides guidance in the Acceptance of Terms and Conditions available at: https://www.hhs.gov/sites/default/files/terms-and-conditions-medicaid-relief-fund.pdf?and states:?The Recipient certifies that the Payment will only be used to prevent, prepare for, and respond to coronavirus, and that the Payment shall reimburse the Recipient only for health care related expenses or lost revenues that are attributable to coronavirus.?
So if your practice saw a decrease in revenues earlier this year, this subsidy can be used to repay the practice for ?lost revenues that are attributable to the coronavirus?.
How To Apply
Please apply for this HHS subsidy known as the Provider Relief Fund (PRF) at: https://cares.linkhealth.com/#/.
It?s been a crazy year for everyone.? Unfortunately, that includes the IRS too. Evidently the IRS hasn?t been able to process the tax payments they are receiving in a timely manner and/or didn?t update their computers to reflect that the deadline to pay 2019 taxes was extended to 7/15.
What did they IRS do instead? They recently mailed out countless notices to taxpayers telling them they owe interest and late payment penalties on their 2019 taxes even if all the taxes owed were paid by 7/15.? According to the IRS at: https://www.irs.gov/newsroom/irs-temporarily-stops-mailing-notices-to-taxpayers-with-balances-due:
IRS temporarily stops mailing notices to taxpayers with balances due
August 21, 2020
The IRS has suspended the mailing of three notices ? the CP501, the CP503 and the CP504 ? that go to taxpayers who have a balance due on their taxes. Although the IRS continues to make significant reductions in the backlog of unopened mail that developed while most IRS operations were closed due to COVID-19, this temporary adjustment to processing is intended to lessen any possible confusion that might be associated with delays in processing correspondence received from taxpayers.
The IRS is taking the step to avoid confusion for taxpayers who previously received a balance due notice (CP14) and mailed a payment to the IRS; however, that payment may still be unopened. The CP501, the CP503 and the CP504 are follow-up notices are typically automatically sent to taxpayers who do not respond to the CP14. These automatic follow-up notices will be temporarily stopped until the backlog of mail is reduced. The IRS will continue to assess the mail inventory to determine the appropriate time to resume the follow-up notices. However, taxpayers who have received but not yet responded to a CP14 balance due notice are encouraged to promptly respond.
In addition, the IRS has previously announced that these payments in the unopened mail will be posted and credited on the date the IRS received them ? rather than the date the agency opened and processed them. The IRS reminds taxpayers in this situation they should not cancel their checks and should ensure funds continue to be available so the IRS can process them to avoid potential penalties and interest. To provide fair and equitable treatment, the IRS is also providing relief from bad check penalties for dishonored checks the agency received between March 1 and July 15 due to delays in this IRS processing.
As the IRS works to stop these mailings at our processing centers, some taxpayers and tax professionals may still receive these notices during the next few weeks due to delivery of existing mailings.
Due to high call volumes, the IRS suggests waiting to contact the agency about any unprocessed paper payments still pending. See IRS.gov/payments for options to make payments other than by mail.
In last week?s Monday Morning Briefing, we wrote that 9/15 Deadline for Q3 Estimated Taxes Will Be Challenging for Practice Owners at:? https://www.schwartzaccountants.com/2020/08/9-15-deadline-for-q3-estimated-taxes-will-be-challenging-for-practice-owners. And later in the week, we sent out our estimated tax reminders to our clients who we set up to pay Q3 2020 estimates to either the IRS or the states where they live or work.
2020 continues to be a challenging year to figure out estimated taxes for all our clients, especially those who own practices.? If you would like us to recalculate what you should send in for estimated taxes this quarter, please e-mail us at email@example.com.? To get you the most accurate payment amount, we plan to factor in your August revenue and expenses and, therefore, will hold off working through our calculations until September 1st. We?ll notify you what to pay prior to the 9/15 deadline.
According to the Paycheck Protection Program Loan FAQs #46 as of August 11, 2020 available at: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf:
Question: How will SBA review borrowers? required good-faith certification concerning the necessity of their loan request?
Answer: When submitting a PPP application, all borrowers must certify in good faith that ?[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.? SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA?s review of PPP loans with respect to this issue: Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.
?SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.
We have posted a lot of information regarding the Provider Relief Fund subsidy on our Covid-19 Recourse Blog available at: https://www.schwartzaccountants.com/covid19resources/, along with other timely information pertaining to the various stimulus opportunities available to help practice owners survive these challenging economic times.
If you haven?t yet finalized your filing for this HHS PPE subsidy equal to 2% of the revenue reported on your most recently filed practice tax return, please start your application soon at: tps://cares.linkhealth.com/#/.
Easy to follow instructions can be found at: https://www.hhs.gov/sites/default/files/medicaid-provider-distribution-instructions.pdf.
According to the Maine Department of Economic and Community Development at:
The State of Maine plans to use CARES Act relief funding to help our economy recover from the impacts of the global pandemic by supporting Maine-based businesses and non-profit organizations through an Economic Recovery Grant Program. The funding originates from the federal Coronavirus Relief Fund and will be awarded in the form of grants to directly alleviate the disruption of operations suffered by Maine?s small businesses and non-profits as a result of the COVID-19 pandemic.
However, please read Enclosure 1 attached to their memo in which they discuss who qualifies for this subsidy and it appears that healthcare practitioners aren?t eligible as follows:
To qualify for a Maine Economic Recovery Grant your business/organization must:
- Demonstrate a need for financial relief based on lost revenues minus expenses incurred since March 1, 2020 due to COVID-19 impacts or related public health response;
- Demonstrate an expected 20% loss in revenue minus expenses for 2020;
- Be a for-profit business or non-profit organization, except:
One thing we have all learned since the CARES Act was passed back in March is that all these federal and state sponsored subsidy programs are fluid. For that reason, doctors working in Maine might eventually be eligible for this subsidy. Please make sure to read updates issued by Maine and by your professional organizations to keep updated on subsidies like this one.