IRS Says Provider Relief Fund Payments Are Taxable
Between the CARES Act and the PPP Health Care Enhancement Act, which both passed earlier this year, $175 billion was allocated to the Provider Relief Fund. This funding was used to reimburse providers, including pharmacies, for lost revenue or expenses as a result …
UPDATE: ESI Issues Recoupment Stay of Deadlines Until Further Notice
On July 1, 2020, pharmacies and industry stakeholders received information from ESI that (i) the Defense Health Agency (DHA) and ESI are reassessing the recoupment action, (ii) money that has already been recouped will not be refunded during the reassessment period, and …
URGENT: ESI Recoupment Letters and Pharmacy Response
New UPDATE: Following our posting of this blog post, ESI mailed letters (dated 6/25/20) to pharmacies that announced the temporary suspension of recoupment actions, as ordered by the Defense Health Agency (DHA). These letters were likely received by affected pharmacies as of …
Paycheck Protection Program Flexibility Act (PPPFA) Enhances Borrower Options
Congress has passed the Paycheck Protection Program Flexibility Act (“PPPFA”) which amends the CARES Act and the Small Business Act to modify certain provisions related to the forgiveness of loans under the Paycheck Protection Program (PPP). This program continues to evolve, however …
Pharmacy Checks and Balances: Preserve Business Value and Quality of Life
By Bonnie Bond, MBA, CPA, and Katie Musorofiti, MSIA, CPA The common image of a community or independent pharmacist is someone in a white lab coat, filling pill bottles and discussing dosage and drug interactions with patients at the counter. Behind the …
Early Insights on the PPP Loan Forgiveness Application
On May 15, 2020, The Small Business Administration (“SBA”) in conjunction with the Department of the Treasury released the Paycheck Protection Program (“PPP”) Loan Forgiveness Application along with detailed instructions. Download the application here. The application is thorough, resembles a tax return …
Safe Harbor Certification For Small PPP Loans, But Document Use Carefully
When applying for the Paycheck Protection Program, every applicant had to certify that the “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.” No one knew exactly what this meant, therefore, our suggestion was to …
Update: Tax Deductibility of Expenses under PPP
As we discussed in our email blast on Friday April, 14th, Congress did not specify in the CARES Act whether expenses paid with Paycheck Protection Program (PPP) loan proceeds would be deductible to the extent the PPP loan is forgiven. In other …
Section 139 Allows for Some Payments to be Tax-Free and Tax Deductible
After the terrorist attacks on September 11, 2001, Congress added a little-known tax provision to the tax law. This provision exempts certain payments from taxation during a disaster or terrorist attack. President Donald Trump’s national emergency declaration triggered the disaster provisions of …
CARES Act and Employer-Provided Education Assistance
The CARES Act added a provision to an existing code section that allows an employee to receive, on a tax-free basis, up to $5,250 each year from his or her employer for expenses associated with a “qualified educational assistance program”. This assistance …
