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Everything you need to know about BMD and the industry.

IRS Grants Additional Extensions and Suspends Collection Activity

More Extensions Granted for Filing Returns

In addition to those previously announced, the IRS has granted extensions for filing of the following returns and payments of amounts due for any of the returns listed below due after April 1, 2020 and before July 15, 2020:

  • Form 706 - Estate and Generation-Skipping Transfer Tax;
  • Form 8971 – Information Regarding Beneficiaries Acquiring Property form a Decedent;
  • Form 709 – United States Gift (and Generation-Skipping Transfer) Tax;
  • Any Estate Tax payment due as a result of an election under sections 6166, 6161, and 6163;
  • Form 990-T – Exempt Organization Business Income Tax;
  • Form 990-PF – Return of Private Foundation or Section 4947 Trust;
  • Form 4720 – Return of Certain Excise Taxes; and
  • All estimated payments made on Form 990-W; 1040-ES, 1041-ES, 1120-W.

(This is a change from the extension of only the first quarter estimate to include the June 15, 2020, estimate).

Collection Actions

The IRS is suspending most collection actions between April 1, 2020 and July 15, 2020.  The specific actions are outlined below:

  • Installment Agreements
    • Those which are currently in place will have all payments suspended between April 1 and July 15. However, if you are paying by automatic debit, you must contact your bank to suspend the payment.  If you do so, please remember to contact your bank to have payments resume in July.
    • New installment agreements may be submitted on the IRS website for those eligible to automatically be qualified for an installment arrangement. All others will not currently be processed.
  • Offers in Compromise
    • Those with pending OICs will have until July 15 to provide any requested information. No request will be closed before July 15 unless the taxpayer has requested the closure;
    • All payments under current OICs may suspend payments until July 15. Be advised that interest continues to accrue during this period;
    • Any current OIC will not be defaulted for failure to file their 2018 return provided they file the return on or before July 15; and
    • New OIC applications may be filed but will not be worked. As a practical matter, these applications should not be prepared or submitted until closer to the July 15 date in order to avoid having to provide updated information.
  • Liens, Levies, and Passport Certifications
    • Automated liens and levies will be suspended during this period;
    • Liens and Levies initiated by field revenue officers will be suspended;
    • High income non-filers will continue to have collection actions during this period; and
    • New certifications to the Department of State for passport holds will be suspended during the period.
  • Private Debt Collection has not been suspended. However, from a practical standpoint there may not be much if any activity from private debt collectors.
  • Audits and Appeals
    • All in-person meetings have been suspended, but examiners will continue to work on matters remotely. Taxpayers are encouraged to respond to any correspondence they receive if they are able.
    • New audits (including correspondence audits) will not be started UNLESS the IRS deems it necessary to protect the government’s interest.
    • Appeals officers will continue to work cases. Conferences will be held by telephone or videoconference.

For questions, or more information, please contact BMD Tax Member, Priscilla Grant at pag@bmdllc.com or 330.253.5934.

Update: President Trump Signs Paycheck Protection Program Flexibility Act of 2020

On June 3, 2020, Congress updated the CARES Act by passing the Paycheck Protection Program Flexibility Act of 2020 (“FA”). The legislation, which has not yet been signed into law by President Trump, would provide more flexibility to small businesses who received loans under the Paycheck Protection Program (“PPP”).

Workers’ Compensation Claims and COVID-19

Can one of my employees file a workers’ compensation claim if they claim that they contracted coronavirus at work? We get that question a lot. Yes, they can, but you should oppose any application for coverage if you receive one. Generally, the claim will not be granted unless the employee has a job that poses a special hazard or risk of exposure to the virus and the employee can prove that he or she contracted the virus at work.

Ohio State Dental Board Implements Teledentistry Rules

Ohio law defines “teledentistry” as the delivery of dental services through the use of synchronous, real-time communication and the delivery of services of a dental hygienist or expanded function dental auxiliary pursuant to a dentist’s authorization.[1] The law requires a dentist who desires to provide dental services through teledentistry to apply for a teledentistry permit from the Ohio State Dental Board (“OSDB”).[2] Pursuant to the mandate under Ohio Revised Code 4715.436, the OSDB is implementing the following teledentistry permit rules and requirements (to be set forth under Ohio Administrative Code Chapter 4715-23). These regulations, which were subject of a public hearing on February 19, 2020, are effective on May 30, 2020.

HHS Addresses Drug Manufacturer Coupons on Out-of-Pocket Limits

On May 7, 2020, the US Department of Health and Human Services (“HHS”) announced their Notice of Benefit Parameters for 2021 in which HHS addressed the application of prescription drug manufacturer copay coupons towards a patient’s out-of-pocket limit. Under this guidance, HHS will permit, but not require, plans and insurers to count direct support offered to enrollees by drug manufacturers (i.e., coupons) for specific prescription drugs toward the annual limits on cost-sharing, regardless of whether a generic equivalent is available.

Important Updates, Deadlines, and Clarifications for the HHS Provider Relief Funds

On May 20, 2020, HHS made important updates and clarifications regarding the General Distribution payments to providers. Between April 10, 2020 and April 24, 2020, HHS distributed an initial $30 billion to providers based on the provider’s 2019 Medicare fee-for-service receipts. These funds were distributed automatically and providers did not need to submit an application in order to receive these funds. The funds were originally touted as a “no strings attached” stimulus payment reserved for healthcare providers. But HHS issued a 10-page Terms and Conditions and required that providers sign an attestation confirming receipt of the funds and agreeing to the Terms and Conditions.