Healthcare Outlook

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Thought Leadership



Industry: Healthcare


Industry Topic Content
1|2|5|6| 2|6| 10.10.2010 - Putting The Right Price On A Business
A well-constructed buy-sell agreement among owners of a particular business entity can prove to be invaluable to that particular business and can often help to avoid shareholder disputes and litigation.
1|2|3|4|5|6|7|8| 1|7| 01.01.2011 - White Paper: The Strategic Role of Finance
Finance organizations can be a catalyst for improved business performance by providing actionable information to a company’s most valuable assets – its leaders. Leaders possess a keen knowledge of the marketplace and critical competencies. They combine their market knowledge with internal company information to make operational, tactical and strategic business decisions. The sum of these decisions dictates how well a company performs. For finance to rise to its growing role, it must transform to overcome its current orientation of skills, processes and tools towards transaction processing and historical analysis.
1|2|5|6| 10| 02.01.2011 - Hiring Trends for 2011 – Growing or Going?
As an Accounting and Finance staffing firm, every day we are asked about hiring and employment trends. While we have found most companies either laid off or did very little hiring in 2009 and 2010, we anticipate 2011 will look completely different.
1|2|5|6| 11| 02.02.2011 - Which Business Entity Is Best for You?
As you are probably well aware, there are several different types of business entities. Which type best suits your current needs?
1|2|5|6| 11| 02.03.2011 - Age-related Milestones
In an era filled with uncertainty, you can count on one thing for sure: Time marches on! This article covers some important age-related tax and financial planning milestones that you should keep in mind for yourself and loved ones.
1|2|5|6|9| 11| 01.31.2011 - New Year Brings With It Significant Tax Law Changes
With the new year now here and the focus soon turning to the upcoming tax season, there are a number of significant changes to state and federal tax laws of which people should be aware. Knowledge of these important changes could prove beneficial as state residents soon prepare to begin their 2010 tax returns.
1|2|3|4|5|6|7| 11| 01.26.2011 - How Do I Implement the 2011 Payroll Tax Cut for Employees?
In 2011, millions of employees will receive a significant boost in their take-home pay as a result of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) enacted December 17.
1|2|5|6| 11| 01.13.2011 - Businesses Get Boost With 100-percent Bonus Depreciation and Code Sec. 179 Expensing
Businesses will benefit from a number of extended and enhanced tax breaks under the recently enacted Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act).
1|2|3|5|6|7|9| 1| 01.13.2011 - Changes Ahead for Organizations with Operating Leases
In August 2010, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued exposure drafts that, if finalized in their current form, would have a significant impact on how companies account for leases.
1|2|5|6| 1| 01.06.2011 - International Financial Reporting Standards - The Future for Private Companies?
Currently, private companies in the U.S. are not required to use a particular basis of accounting when preparing financial statements. Instead, the company can choose to prepare their statements in accordance with GAAP or another comprehensive basis of accounting such as cash or income tax basis, or even IFRS for SMEs based on the needs of the users. The choice is usually driven by contractual obligations with third-party users, including banks, bonding companies, state agencies, etc.
1|2|5|6| 11| 12.08.2010 - Connecticut Sales and Use Taxes on Services, Taxable Services
Connecticut's sales and use tax laws include a proliferation of tax on "enumerated services." In contrast, most states tax somewhere between no services and a few select ones. The roots of this Connecticut anomaly date from when a Connecticut income tax was a "sacred cow," and the legislature tried everything in its power to maintain its revenue base without one.
1|2|3|4|5|6|7|8| 9|12| 12.03.2010 - Master Data Management Series - Part 2
In the last article we introduced the concept of Master Data Management (MDM) and why it is relevant to a broad range of organizations. We ended the article with some of the indicators you might look for to determine whether you have an operational or analytical MDM challenge within your organization.
1|2|3|5|6|7| 6| 12.02.2010 - Forensic Accounting in the Underground Economy
More recently, U.S. Senator Carl Levin (D-Michigan) estimated that the U.S. Treasury loses $100 billion each year in unpaid taxes alone. This is commonly called the underground economy. In this article, I shall discuss the sources that fund the underground economy, how those funds are hidden and, more importantly, how they may be detected by forensic accountants.
1|2|3|4|5|6|7|8| 12| 11.03.2010 - Master Data Management – Part I
Regardless of the size of your organization, if you've integrated multiple lines of business systems (such as ERP, CRM, etc.) into your environment, you likely have a Master Data Management (MDM) problem. The likelihood of this is further amplified if you've acquired or merged with other businesses. This article is the first in a series that will serve to educate organizations on the importance of MDM, as well as some of the best practices and pitfalls associated with implementing an MDM solution.
1|2|5|6| 11| 11.08.2010 - Foreign Tax Provisions in the 2010 Education and Jobs Act
To help offset the cost of a temporary increase in funding for Medicaid and state education, the recently enacted 2010 Education and Jobs Act (Act) tightens the rules on the use of foreign tax credits that multinationals use to lower their U.S. tax bill.
3|5|7| 11| 12.01.2010 - New 990 Thresholds for 2010 Tax Year
Do you know which Form 990-series return you are required to file for the 2010 tax year?
3|5|7| 5| 12.02.2010 - Making Non-Profit Governing Documents Work For You
Many non-profits never look at their governing documents and only dust them off when requested by the auditors or a potential funding source. However, there are benefits to reviewing these documents on a regular basis and revising them to obtain maximum legal benefit.
1|9|7|6|5|4|3|2| 11| 04.15.2011 - Health Care Reform Requires Employers to Disclose the Cost of Health Care on Form W-2
Beginning in tax year January 1, 2012, The Patient Protection and Affordable Care Act (PPACA) requires that employers disclose the aggregate value of employer-sponsored health coverage to each employee on form W-2, Box 12D. Employers do not need to specify the cost of the different types of health coverage, but only report the total cost of coverage.
5| 1| 09.08.2010 - “Overpayments” - Adherence to New Regulations Essential
"Overpayments," which occur when healthcare providers receive "too much" funding from government programs, are a significant issue frequently faced by many organizations. How these overpayments are managed and reported could mean the difference between the business running smoothly or facing potentially large fines and penalties.
5| 1| 09.20.2010 - Tax-Exempt Hospitals Face Additional Requirements Under Health Care Reform Law
The Patient Protection and Affordable Care Act (PPACA), as enacted March 23, 2010, includes certain provisions that affect tax-exempt hospitals. It is essential that these hospitals be in compliance with each of these provisions, and that they are comfortable in their level of familiarity with them.
1|2|5|6| 11| 01.06.2010 - House Passes Extenders Bill
On December 9, 2009 the House of Representatives passed the "Tax Extenders Act of 2009" ("the Act"). The Act extends a host of expiring tax provisions and adopts several new provisions that are aimed at raising revenue. The next step in the process is to have the Senate and President approve the Act in order to make it law.
1|2|5|6| 11.02.2009 - A Valuable Lending Resource for Connecticut Businesses
The Connecticut Development Authority (CDA) is a quasi-public agency whose mission is to work with businesses and their lenders to help ensure that the State maintains jobs in the near term and plays a role in stabilizing businesses for potential job creation in the future.
1|2|3|4|5|6|7|8| 4| 09.16.2009 - Ten Signals of Occupational Fraud - It Could Happen to You
We all think "it can't happen to us." Our business is safe and our controls are sound. Don't be fooled. Fraud is rampant and is increasing rapidly as recessionary pressures take hold of our economy.
9|8|7|5|4| 1|9| 04.18.2011 - Are You Getting the "Return" on Your Accounting Software Investment?
Purchasing accounting software can be similar to some of your personal expenditures, such as a house or a car. You need something that meets your needs, budget and functional requirements. You want reliability, performance and, above all, a sense of security. All too often software vendors have promised a great deal but delivered a lot less than the customer expected.
1|2|5|6|8| 10.15.2009 - Technical Economic Recovery is Underway, But Job Recovery is Uncertain
Many economic doomsayers continue spreading the word that the economy is in terrible shape and will get worse, but the facts just don't back that up. While government finances are still in turmoil, consumers remain skittish, and job growth is lagging, the worst is definitely behind us and, according to numerous economic indicators, a technical recovery is underway.
1|2|5|6| 4|6| 09.30.2010 - Shell Games Affect Creditors: Various Methods Used to Conceal Assets
What happens when debtors fail to disclose assets on their bankruptcy petitions? Creditors are left holding the bag. The bankruptcy system in the United States is designed to provide a "fresh start" to debtors in financial distress who are unable to meet their financial obligations.
1|2|3|4|5|6|7|8| 4|8|12| 01.15.2010 - Making it Easier to Wave the Red Flag if You Detect Identity Theft
As part of the Fair and Accurate Transactions (FACT) act of 2003, the "Red Flags Rule" requires financial institutions and creditors to develop and implement a written Identity Theft Prevention Program (ITPP) to identify possible identity theft that mitigates the potential damage caused by this crime.
1|2|3|4|5|6|7| 4|6| 02.05.2010 - Managing the Business Risk of Fraudulent Activity
In the 2009 business world, the unfortunate reality is occupational fraud is everywhere, and it is costing businesses enormous amounts of money when it goes unchecked and undetected.
1|2|3|4|5|6|7| 4|6|15| 03.05.2010 - Corporate Account Take Over – The Latest Cyber Crime
The alarm has been sounded; online crime was up by 600% in 2009. A large portion of that increase was in the area of electronic funds transfers placed through the Automated Clearing House ("ACH"). Late last year the Electronic Payment Association (NACHA) and the Internet Crime Complaint Center (iC3) issued warnings about what has come to be known as Corporate Account Takeover. In a Corporate Account Takeover, a business finds that, virtually overnight, funds have been stripped.
1|2|3|4|5|6|7| 11| 03.12.2010 - Healthcare Reform 101: New Responsibilities and Taxes for Employers and Individuals
Healthcare reform is now law, and many employers are asking how it affects my business and employees. The first thing to keep in mind is that reform is gradual. The healthcare reforms and tax provisions in the new healthcare reform package play out over time, with some taking effect this year or next year, but others not until 2014 and beyond.
1|2|3|4|5|6|7|8| 9|12| 04.01.2010 - Cloud Based Services Are Here. Are You Ready?
Email, like the telephone, has become a standard form of communication that most people, especially in the business world, take for granted. In order to provide users with this "always on" capability, many large organizations have invested in a variety of technologies (clustering, SANs, etc.) that have cost tens of thousands, perhaps hundreds of thousands of dollars, and continue to invest to keep software and hardware up-to-date.
1|2|5|6| 11| 05.13.2010 - IRS Holds to Timetable on Reporting of Uncertain Tax Position
The IRS has issued drafts of new Schedule UTP (Uncertain Tax Positions), which business taxpayers will use to report their uncertain tax positions with their annual tax return, beginning for the 2010 tax year. The draft schedule reflects the IRS' decision to move forward quickly with its controversial proposal to require certain taxpayers to report uncertain tax positions with their annual tax returns.
1|2|5|6| 11| 09.08.2010 - CBO Revenue Scoring — The Mystery Behind Tax Legislation
How often do we now hear the famous quote by Otto von Bismark from the 19th century, "There are two things you don't want to see being made - sausage and legislation?" Barely a day goes by without media coverage of deficit projections, with the news focused on how to close the budget deficit. Depending on one's policy viewpoint, there will inevitably be a discussion on the merits of tax increases and spending reductions.
1|2|3|4|5|6|7|8| 9|12| 09.15.2010 - Lead, Follow or Get Out of the Way -- 5 Technology Trends to Consider
We can always avail ourselves of new technology solutions to tackle problems in new ways. Some are evolutionary, some are revolutionary and some are subversive. There are five technology trends that your organization can take the lead on, wait for a few first movers and then follow, or simply get out of the way and let the trend pass.
1|2|5|6| 11| 10.01.2010 - Gifting Opportunities for 2010
There is good news in 2010 for high net worth individuals considering wealth transfer opportunities. Since Congress has failed to address any transfer tax reform this year, there is a growing belief there will be no new legislation in the near future. This result can be beneficial for those who are considering gift-planning opportunities before year end.
3|2|1|9|7|6|5|4| 11| 04.15.2011 - IRS Issues 2011 Vehicle Depreciation Dollar Limits
The IRS has issued the limitations on depreciation deductions for owners of passenger automobiles, trucks and vans first "placed in service" (i.e. used) during the 2011 calendar year. The IRS also provided revised tables of depreciation limits for vehicles first placed in service (or first leased by a taxpayer) during 2010 and to which bonus depreciation applies.
1|2|5|6| 11| 10.01.2010 - Deducting Receivables as Bad Business Debts
While the economy continues to slowly recover, many businesses continue to face customers struggling to pay outstanding bills for services or goods. The Tax Code provides relief to businesses faced with the inability to collect on accounts receivable. Businesses that are unable to get customers to pay the bill can claim a deduction for the "bad debt."
1|2|3|4|5|6|7| 11| 10.05.2010 - How Do I Prepare For the New W-2 Reporting for Healthcare Coverage?
Over the next few years, employers will face a number of new compliance and reporting obligations, among others, as a result of the new healthcare reform package (the Patient Protection and Affordable Care Act). On the horizon for employers is the requirement to report the value of health insurance coverage they provide to each employee on the employee's annual Form W-2, Wage and Tax Statement.
1|2|5|6|9| 11| 03.24.2017 - Uncertain Tax Positions
In July 2006, the Financial Accounting Standard Board ("FASB") issued Interpretation No. 48 ("FIN 48") – Accounting for Uncertain Tax Positions – to try and put all companies on the same playing field.
1|2|5|6| 11.01.2010 - CBIA/BlumShapiro 2010 Survey of Connecticut Businesses
For the ninth consecutive year, BlumShapiro and the Connecticut Business & Industry Association (CBIA) have partnered to produce the Survey of Connecticut Businesses. This annual report examines the economic, financial and regulatory climate in which Connecticut companies operate, gauging their business outlook and highlighting relevant policy issues.
1|2|5|6| 11| 11.02.2010 - Congress Passes Individual and Business Tax Incentives in the Small Business Jobs Act of 2010
Congress has passed a small business jobs bill, the Small Business Jobs Act of 2010 (H.R. 5297), with valuable individual and business tax incentives totaling approximately $12 billion. Many of these tax incentives are temporary so you have only a short window of time in which to take advantage of them.
1|2|3|5|6|7| 11| 11.02.2010 - IRS Defers Reporting of Employer-Provided Health Insurance Costs on Form W-2
Employers are eligible for a one-year deferral of mandatory reporting of the costs of employer-provided health insurance on an employee's Form W-2, Wage and Tax Statement. According to the IRS, many employers need more time to make the necessary changes to their payroll systems to ensure accurate reporting.
1|2|5|6|9| 2| 03.01.2011 - Exit Planning and Valuation
There are many unsystematic – or company specific – risks that a business owner may have more control in trying to minimize. Two common risk areas are lack of management depth (key man risk) and customer or supplier concentration.
1|2|3|4|5|6|7|9| 4| 03.01.2011 - Protecting Your Organization From Fraud
The Association of Certified Fraud Examiners estimates that organizations lose 5% of annual revenue to fraud. Frauds include Ponzi schemes, asset misappropriation, computer hacking and identify theft, just to name a few. Small- and mid-size businesses tend to be the most vulnerable because they generally have fewer controls in place to detect and deter fraud.
1|2|5|6|9| 11| 03.01.2011 - Tax Deductions for Real Property Improvements
There is an interesting new federal tax benefit available for those who own small businesses. Section 179 of the Internal Revenue Code has been substantially widened regarding expensing for 2010 and 2011 tax returns, and it now includes deductions for Qualified Real Property Improvements.
4|3|2|1|5|6|7|8|9| 1|8|12| 05.03.2011 - New Massachusetts Data Security Law Can Mean Harsh Penalties
A law passed in Massachusetts placed stringent new regulations on companies and organizations that are in possession of customers’ personal financial information. These data security measures also included harsh penalties for companies found not to be in full compliance by March 1, 2010, subjecting businesses who fail to adequately protect credit card, debit card, bank account or other financial information to potential fines of more than $100,000.
5|7| 1| 05.02.2011 - Changes to PCUREG-01 Application for Connecticut Charitable Organizations
Recently, the Department of Consumer Protection Public Charities Unit changed the application process for charitable organizations registering under the Connecticut Solicitation of Charitable Funds Act. Effective with charitable organization registrations due by March 31, 2011, an application to renew the registrations will be mailed directly to the organization prior to their registration expiring.
5| 11| 05.10.2011 - Medicaid Rate Increase? The State May Give it; but the Federal Government May Take it Away
The fiscal 2012 state budget proposed by Governor Malloy includes a provision to increase the resident user fee (provider tax) for nursing homes. This increased fee will result in additional federal matching funds for the state which would allow for a Medicaid rate increase of 1.25% for most nursing homes. This can occur based on provisions in the federal law which allows revenues from a provider tax to be returned directly or indirectly to the providers who have been taxed. While all additional funding that is put into the nursing home system is critical to facilities' financial well-being, this type of increased funding can also be hazardous to the industry as well.
5| 05.10.2011 - Accountable Care Organizations and their Impact on Skilled Nursing Homes
On March 31, 2011, the Center for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services issued their proposed rule on Medicare Shared Saving Programs for Accountable Care Organizations. The 429-page document specifically identifies acute care hospitals and physicians as eligible participants in the shared saving program of an ACO. Federally qualified health centers, rural health centers, skilled nursing homes, home health agencies and critical access hospitals are not specifically designated as eligible participants in the shared savings program of an ACO.
1|2|3|4|5|6|7|9| 11| 05.16.2011 - Highlights of Tax Changes in the 2011-2013 CT Budget Bill
Governor Malloy signed the much-discussed Connecticut (CT) biennial budget bill, now known as Public Act 11-6, on May 4, 2011. The Act contains numerous tax changes. We are highlighting the changes that affect the broadest cross section of our clients, though there are additional changes not covered herein. In addition, there are other tax proposals in various phases of consideration. The success or failure of obtaining a cost-cutting agreement with state employees could affect the need for additional revenue to balance the budget. The legislature is in session until June 8, 2011 so more tax changes could still be enacted.
1|2|5|6|9| 05.17.2011 - Tax Angles to Capital Gains and Losses - New Law Extends Favorable Capital Gain Rules
The tax rules for offsetting capital gains and losses can be confusing, even for experienced investors. However, the new 2010 Tax Relief Act extends favorable tax treatment for long-term capital gains. This latest extension lasts through 2012. For simplicity, the following discussion is limited to capital gains and losses arising from sales of securities. (Additional special rules may apply to other capital assets such as sales of collectibles and property subject to depreciation recapture.)
1|2|3|4|5|6|7|9| 3|11| 06.16.2011 - New Form 8955-SSA: Ensuring Compliance
Pension plans have used Schedule SSA of Form 5500 to report participants who separate from service with deferred vested benefits. However, with the start of the mandated 5500 electronic filing requirement for annual reports with the 2009 plan year, that information could not be filed through the Department of Labor’s EFAST2 electronic filing system. As a result, Schedule SSA has been eliminated.
2|3|4|5|6|7|9| 11| 06.17.2011 - Changes to the Estate and Gift Tax
In an effort to reduce the state deficit, the governor signed the state budget which included changes to the estate and gift tax retroactive from January 1, 2011.
1|2|3|4|5|6|7|9| 06.17.2011 - Economic Recovery Remains Slow and Problematic in the State
The economic recovery is in its 24th month, but growth has been disappointing due to frequent obstacles, including surges in oil and commodity prices that have prevented steady improvement or noticeable acceleration. While some areas of the economy are strong, including exports and commodities, others, especially housing and general construction, seem stuck.
1|2|3|4|5|6|7|9| 3| 07.12.2011 - Inflation-adjusted amounts released for 2012 Health Savings Accounts
The IRS has provided the inflation-adjusted amounts that will govern health savings accounts (HSAs) for 2012. Amounts are increased for changes in the cost-of-living adjustment. The amounts generally have increased from 2011.
1|2|3|4|5|6|7|8|9| 07.12.2011 - PCI Compliance – It's All In The Numbers
Whether it is 14 or 16 numerical digits in length, securing and protecting credit card numbers and all associated information is extremely important. In an age where electronic information can be shared from anywhere in the world at a moment’s notice, people need to know more than ever that their credit card information is being protected. The consequences of this information falling into the wrong hands are simply too severe – identity theft.
1|2|3|4|5|6|7|9| 11| 07.13.2011 - Details of Connecticut Sales and Use Tax Legislative Changes Emerging
The Connecticut Department of Revenue Services (“DRS”), was forced into fast action by the Connecticut legislature’s passage of significant sales and use tax changes which took effect on July 1, 2011. We very briefly outlined those changes in our newsletter of May 16, 2011. Since that time, DRS has provided some much needed guidance with respect to many of the changes. This newsletter will highlight some of those changes in more detail per the DRS guidelines. We are not trying to be all-inclusive.
5| 1|2| 08.02.2011 - Fair Value Considerations in Acquisitions
As economic pressures increase, many healthcare organizations are considering potential acquisitions or mergers in order to maximize new revenue streams, leverage fixed costs or consolidate areas of expertise.
1|2|3|4|5|6|7|9| 11| 08.05.2011 - White House and Congressional Leaders Agree to Raise Debt Ceiling - Tax Provisions Under Consideration
White House and Congressional Leaders have agreed to raise debt ceiling - creating a joint committee on deficit reduction.
1|2|3|4|5|6|7|9| 08.05.2011 - Tax Breaks for Energy Saving Can Provide Stimulus for Homeowners and Businesses
Federal tax laws provide some potential good news across the board in terms of lowering energy costs, as a number of key energy savings incentives exist for homeowners and businesses alike. What follows is a brief overview of the key tax rules in this area and the potential savings that may occur.
5| 1| 08.15.2011 - FASB Issues Accounting Standard Update for Certain Health Care Entities
In July 2011, the FASB issued Accounting Standard Update 2011-07 – Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Health Care Entities (ASU 2011-07).
1|2|3|4|5|6|7|9| 09.13.2011 - It’s Still Jobs, Jobs, Jobs! But most economists raise chances of a double dip.
The most critical factor determining Connecticut's prospects for real and sustained economic recovery is, simply, jobs! More jobs will cure many of our state's ills, from tepid consumer spending to a stalled housing market and the state's long-term fiscal health.
1|2|3|5|6|7|9| 11| 09.13.2011 - Year-end Planning: Take Advantage of Business Provisions That May Sunset for Good on December 31, 2011
Although it's only September, taxpayers are well-advised to consider how to make the most of tax breaks that are available this year but may not be around next year, or may survive only in diluted form. Given the wrenching political battle that played out in July over deficits and the debt ceiling, many tax provisions expiring at the end of this year may not be given another lease on life. Those provisions that aid a particular industry or group of taxpayers could be the most at risk. This article reviews the tax breaks for businesses that are available right now but may sunset on Dec. 31, 2011.
1|2|3|5|6|7|9| 11| 09.13.2011 - Highlights of Bonus Depreciation for Vehicles
The Small Business Jobs Act of 2010 (the 2010 Jobs Act) and the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the 2010 Tax Relief Act) were very favorable to taxpayers placing assets, including vehicles, in service in 2010 through 2012.
1|2|3|5|6|7|9| 11| 09.13.2011 - Debt Forgiven? You Are Not Home-Free - Tax May Apply to Cancellation-of-Debt Income
Let’s say an individual owes money to a third party, relating to a loan for business or personal reasons. Due to extenuating circumstances, the lender agrees to a settlement of an amount less than what the borrower owes in principal and interest. So the full amount of debt is effectively wiped off the books. Case closed, right?
1|2|3|5|6|7|9| 10.06.2011 - Health Care Tax Credit Could Mean Savings For Small Businesses
One area where we have been advising some of our small business clients to explore this year for potential savings is a new Small Business Health Care Tax Credit, made possible by the new federal Affordable Care Act (ACA).
5|3|7| 12.04.2012 - Preventative Tax Planning for Tax-Exempt Organizations
In recent years, the IRS has increased the number of audits of tax-exempt organizations and the methods used to select an organization for audit. This is primarily the result of the new 990 as well as recent high-profile fraud cases and increased public scrutiny of such organizations. As such, it would be wise for all tax-exempt organizations to take a hard look at their operations, policies and activities to help prevent a costly outcome of an IRS examination. This article will focus on some of the high-risk audit areas, the factors used by the IRS in selecting tax-exempt organizations for audit, and will then provide some preventative steps that tax-exempt organizations can take to help minimize risks and ensure compliance with IRS requirements. Although this article is geared towards 501(c)(3) organizations, many of the concepts can be applied to all types of tax-exempt organizations.
1|2|3|4|5|6|7|9| 4| 10.25.2011 - Re-Shaping Businesses To Eliminate Fraud Triangle
White collar criminals (or fraudsters) are not easily picked out from a crowd. They blend in seamlessly with society and do not look like criminals. They are likely educated, with no criminal record, and probably do not abuse drugs or alcohol.
1|2|3|4|5|6|7|9| 10.25.2011 - Ask the Expert: Minimizing Tax Burden in an Unusually High Income Year
I just sold my company. What can I do to minimize the tax bill that results from the event?
1|2|3|4|5|6|7|9| 11| 10.25.2011 - Determination of Employer's Liability for Certain Employment Taxes — Voluntary Worker Classification Settlement Program
IRS detailed new program for employers to receive relief from payroll taxes otherwise owed for agreeing to prospectively treat workers as employees. To be eligible, employer must have filed Form 1099s for each worker for past 3 years, and not be currently under audit. In exchange for agreement to treat workers as employees, employer will be liable for 10% of liability due for most recent tax years, as determined under reduced rates of Code Sec. 3509; , but won't be liable for penalties and interest and won't be subject to audit for employment tax issues. Employer participating in program will agree to extend period of limitations on assessment of employment taxes for three years for first, second and third calendar years beginning after date on which employer has agreed under program to begin treating workers as employees. Those who are accepted into program will execute closing agreement with IRS and pay full amount due at same time.
9|1|2|3|4|5|6|7| 11| 11.09.2011 - The Three Most Important Connecticut Economic Initiatives - Jobs, Jobs, Jobs
Following a special fall session of the Connecticut General Assembly, Connecticut Governor Dannel Malloy recently signed into law tax legislation as part of a broad economic stimulus package. Among the most significant tax legislation enacted was the creation of a new jobs tax credit and revisions to the recently enacted Manufacturing Reinvestment Account program.
5| 11.09.2011 - The Impact on Nursing Homes of the 2012 Office of the Inspector General Work Plan
The Office of the Inspector General (OIG) issued its 2012 work plan in October. The 165-page document provides guidance from the Inspector General on areas which it plans on reviewing in fiscal year 2012 as part of its goal to protect the integrity of Health and Human Services programs and operations. The work plan covers all areas of healthcare including hospitals, nursing homes, home care, hospice, medical equipment providers, drug providers, Medicare contractors, insurers and public health agencies. The Inspector General uses the work plan to identify fraud, waste and abuse; create opportunities to improve program economy, efficiency and effectiveness; and hold accountable those who do not meet program requirements or who violate federal laws.
5| 11.16.2011 - Final Rules for Accountable Care Organizations - Impact on Nursing Homes
In March 2011, the Centers for Medicare and Medicaid Services (CMS) issued a proposed rule on Medicare Shared Savings Programs for Accountable Care Organizations. This rule, a product of the changes sought by the Affordable Care Act, proposed certain incentives and penalties to incentivize acute care hospitals and physicians to formally partner their efforts. The goal of such a partnership is to improve patient care while reducing costs through the formation of an Accountable Care Organization (ACO). As part of this proposed rule, federally qualified health centers, rural health centers, skilled nursing homes, home health agencies and critical access hospitals were not designated as eligible participants in ACOs.
5| 12.04.2012 - Avoiding the Pitfalls of the False Claims Act
The federal False Claims Act (“FCA”) dates from the Civil War and until recent times was used against defense contractors who falsely billed the federal government for goods or services. Since the 1980’s, the FCA has predominately come to be used against health care providers. The FCA makes anyone who “knowingly” submits or causes to be submitted a false claim potentially liable for treble damages, costs of investigation and civil penalties of thousands of dollars. “Knowing” is defined to include (a) actual knowledge, (b) deliberate ignorance, or (c) reckless disregard.
1|2|3|4|5|6|7|9| 11| 12.01.2011 - New Law Repeals 3% Government Withholding, Provides Hiring Credits for Veterans, and More
On November 21, President Obama signed into law the 3% Withholding Repeal and Job Creation Act. The new law does much more than merely repeal withholding on government contractors. The new law enhances the Work Opportunity Tax Credit (WOTC) for veterans of the U.S. Armed Forces, expands the IRS' continuous levy authority, and more.
7|5|3| 1| 01.17.2012 - Not-for-Profit Advisory Committee: Changes Are Coming
The big news in the non-profit organization (NFP) world these days is the establishment by the Financial Accounting Standards Board (FASB) of a Not-for-Profit Advisory Committee (NAC). The NAC is charged with evaluating current non-profit accounting and financial reporting standards and proposing changes to the FASB.
1|2|4|5|6|9| 1| 01.06.2012 - Revised Standard Simplifies Goodwill Testing for Impairment, Testing Goodwill for Impairment
On September 15, 2011, Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2011-08, Testing Goodwill for Impairment. This update is intended to reduce the cost and complexity of the annual goodwill impairment test by simplifying how an entity tests goodwill for impairment.
1|2|4|5|6|9| 1| 01.06.2012 - Cash Flow Planning: A Good Reminder During These Uncertain Times
Many people solely consider profit when measuring the success of their business. The trouble is that profits do not necessarily coincide with their associated cash flows. The fact is, most failed businesses fail as a result of lack of cash flow. During these uncertain economic times, cash flow planning is an important exercise when running your business, regardless of the size of your operation. Trying to manage your business without a cash flow plan in today’s environment is like traveling to a new location without a map or a GPS device.
1|2|3|4|5|6|7|9| 01.06.2012 - Payroll Tax Cut Extension
At the eleventh hour, Congress approved a two-month extension of the employee-side payroll tax cut in the Temporary Payroll Tax Cut Continuation Act of 2011. The two-month extension, for January and February 2012, is intended to give lawmakers additional time to negotiate a full-year extension of the payroll tax cut through the end of 2012.
1|2|3|5|6|7|9| 11| 01.06.2012 - New Hire Retention Credit
The Hiring Incentives to Restore Employment Act of 2010 (HIRE Act) contained several provisions to give employers incentive to hire employees. One of the provisions authorized a credit of up to $1,000 for “retained workers”. This credit is called the New Hire Retention Credit.
9|7|6|5|4|3|2|1| 3| 12.10.2014 - Retirement Plan Fund Revenue Equalization
Since the issuance of the fee disclosure regulations related to employee retirement plans, more transparency of fees and revenue-sharing agreements has resulted. This transparency has prompted a number of questions regarding the fees being paid, who they are being paid to and how revenue-sharing agreements play a role in the administration of the plan.
3|5|7| 11| 01.17.2012 - Form 990 Filing Deadline Extended For Some Tax-Exempt Organizations
In December 2011, the IRS issued Notice 2012-4 which notified tax-exempt organizations that the IRS eFile system would not be available from January 1, 2012 through February 29, 2012 for electronic filing of Form 990, Form 990-EZ, Form 990-PF and Form 1120-POL. For organizations with filing due dates (or first three-month extended due dates) during this period, these organizations have the following options:
1|2|3|4|5|6|7|9| 11| 02.02.2012 - The 2012 Offshore Voluntary Disclosure Program
On January 9, 2012, the IRS reopened the offshore voluntary disclosure program (the “2012 OVDP”) to give taxpayers with unreported foreign accounts a chance to become current on their taxes and reporting obligations while mitigating the risk of criminal prosecution.
1|2|3|5|6|7|9| 1| 02.02.2012 - Sweeping New IRS 'Repair Regulations' Impact Most Businesses
The IRS has released much-anticipated temporary and proposed regulations on the capitalization of costs incurred for tangible property. They impact how virtually any business writes off costs that repair, maintain, improve or replace any tangible property used in the business, from office furniture to roof repairs to photocopy maintenance and everything in between. They apply immediately, to tax years beginning on or after January 1, 2012.
2|1|3|4|5|6|7|9| 11| 02.02.2012 - Connecticut Job Expansion Tax Credit (JET) Presentation Now Available
Connecticut businesses can be eligible for Connecticut tax credits of $500 per month for each new full‐time Connecticut job created. If the new employee is receiving vocational rehabilitative services from the Bureau of Rehabilitative Services, receiving unemployment benefits, or is a veteran then the tax credit is increased to $900 per month. These credits will be available for each new Connecticut employee hired between January 1, 2012 and prior to January 1, 2014 for a period of three years. Download our presentation to learn more about which taxes the credit may be applied against and how to apply.
4|2|1|9|5|6|7| 11| 02.22.2012 - Congress Passes Payroll Tax Cut Extension Through 2012
On February 17, Congress passed H.R. 3630, the “Middle Class Tax Relief and Job Creation Act of 2012” (the Act) and sent it to the President for his signature. The Act extends the 2-percentage-point payroll tax cut through the end of 2012, and also repeals a number of estimated tax shifts for large corporations. Here are highlights of the tax changes in this new law.
1|2|3|4|5|6|7|9| 02.24.2012 - Middle Class Tax Relief and Job Creation Act of 2012
President Obama on February 22, 2012, signed into law a much-anticipated extension of the employee-side payroll tax cut through the end of 2012. After weeks of uncertainty over whether an agreement could be reached, the House passed the Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630) by a vote of 293 to 132 on February 17, 2012.
1|2|3|5|6|7|9| 03.12.2012 - Connecticut’s Economy Shows Improvement, Although Caution Signs Ahead
Connecticut’s economy showed steady signs of improvement in the last quarter, but there is still reason to be cautious.
1|2|5|6|9| 11| 03.12.2012 - Expiring Tax Provisions Add to Uncertainty in the Business World in 2012
A number of key tax provisions have either expired or will soon expire. With a struggling economy and recent inaction by Congress resulting in failure to reach an agreement on reducing the budget deficit, this could only add to the uncertainty many businesses are facing in 2012.
1|2|5|6|9| 03.12.2012 - Recordkeeping Rules for Charitable Deductions
Year in and year out, charitable donations often provide big deductions for high-income individuals at tax return time. Deductions for charitable gifts may be claimed only by taxpayers who itemize their returns, but even itemizers are at risk if they do not have the requisite proof to back up their claims.
1|2|3|5|6|7|9| 11| 03.12.2012 - Payroll Tax Holiday Extended for All of 2012
On February 22, President Obama signed the Middle Class Tax Relief and Job Creation Act of 2012. The new law extends the employee-side payroll tax holiday, giving wage earners and self-employed individuals 12 months of reduced payroll taxes in 2012.
1|2|3|5|6|7|9| 11| 03.12.2012 - Administration Unveils Framework for Business Tax Reform
A reduced corporate tax rate, elimination of many business tax preferences, a new minimum tax on overseas profits, and much more are all part of President Obama's recently released Framework for Business Tax Reform (the "Framework"). The much-anticipated blueprint of the administration's plans for corporate tax reform was unveiled on February 22, 2012, in Washington, D.C.
1|2|3|5|6|7|9| 11| 03.30.2012 - Avoiding Taxes on Real Estate Transactions Through Like-Kind Exchanges
With most of the country experiencing a depressed real estate market, you may find it difficult to sell a business building or apartment building. To make matters worse, a sale could result in significant tax consequences for real estate property that has appreciated in value since it was acquired.
5|7| 1| 04.02.2012 - Post-Issuance Compliance Requirements for Tax-Exempt Bonds
Many tax-exempt organizations have raised money for capital and other improvements through the issuance of tax-exempt bonds. This type of financing requires additional compliance and reporting. In recent correspondence from the IRS, issuers are being asked about their bonds as well as their internal policies to ensure post-issuance compliance.
3|5|7|4| 1| 04.02.2012 - The Federal Office of Management and Budget Proposes Changes to The Federal Single Audit and Related Circulars
The Federal Office of Management and Budget (OMB) proposed new rules surrounding the federal single audit on February 28, 2012 in the Federal Register Vol. 77, No. 39. This represents the first efforts in many years to revamp the federal single audit process.
5| 04.11.2012 - HITECH HIPAA — It’s Only Just Begun
Doesn’t it seem like HIPAA has been around forever? It has been nine years since the HIPAA privacy act was enacted in April 2003 and seven years since the HIPPA security act was implemented. From the regulators’ perspective, the compliance results from those acts were less than favorable, so the government followed up with HITECH HIPPA in 2009.
1|2|3|4|5|6|7|8|9| 04.27.2012 - Business Software Technology Alignment
In our last newsletter we introduced the concept of reviewing and assessing the alignment of your business software technology with your business strategy, processes and people. You might wonder how your business software could get out of alignment in the first place and what impact it could have on your business. It is important to understand how to recognize the symptoms and be able to make critical business decisions for your business when the time comes.
5| 05.03.2012 - Five Massachusetts Organizations Selected to be Pioneer ACOs
The Centers for Medicare and Medicaid Services (CMS) issued a General Fact Sheet on the Pioneer Accountable Care Organization (ACO) Model, which disclosed the 32 selected organizations participating in the Pioneer ACO Model. Five of the organizations chosen are from Massachusetts: Atrius Health Services, Beth Israel Deaconess Physician Organization (BIDPO), Mount Auburn Cambridge Independent Practice Association (MACIPA), Partners Healthcare and Steward Health Care System.
5| 1| 05.03.2012 - An Attempt to Right Size Connecticut Long-Term Care
While the 2012 legislative session winds down in the next month, a key element of last year’s session continues to be analyzed. Section 17b-369 of the State of Connecticut General Statues was revised last year, and requires the Commissioner of Social Services to develop a strategic plan to rebalance long-term care supports and services between those provided in institutions (nursing facilities) and those provided in home and community based settings.
1|2|3|5|6|7| 05.09.2012 - 2011 Form 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR)
The purpose of this alert is to remind you of the requirement to file the 2011 United States (U.S.) Treasury Department Form 90-22.1 for non-U.S. bank and financial accounts if the aggregate value of the financial account(s) exceeds $10,000 at any time during the year.
1|2|3|4|5|6|7|8|9| 8|9|12| 05.09.2012 - The Death of SAS70 - The Birth of SSAE16 Standards
In 1980 the American Institute of Certified Public Accountants (AICPA) implemented the Statement on Auditing Standards No. 70, commonly known as SAS No. 70, to review and evaluate the internal controls of a service organization. SAS No. 70 quickly became a standard for the user organizations to obtain assurance that their data was being protected and managed in a secure manner. At the same time, service organizations were using SAS No.70 as a way to show existing and potential customers that they were utilizing industry best practices.
1|2|3|4|5|6|7|9| 11| 06.07.2012 - The Sales and Use Taxation of Software – Software Accessed from the Cloud
Since software was first invented, state tax authorities and taxpayers have spent a considerable amount of time and resources to determine its sales and use taxation. With the introduction of the “Software as a Service” distribution model, the taxation of software has become increasingly complex. This article will provide an evolutionary background on software taxation, as well as sales and use taxation in relation to cloud computing.
1|2|3|4|5|6|7|9| 11| 06.08.2012 - The Tangible Property "Repair" Regulations : Amounts Paid to Acquire or Produce Tangible Property
A taxpayer must capitalize amounts paid to acquire or produce a unit of real property or personal property, including leasehold improvement property, land and land improvements, buildings, machinery and equipment, and furniture and fixtures. Temporary Regulation 1.263(a)-2T provides guidance on whether to capitalize costs related to the acquisition or production of tangible property including a de mimimis rule. The rules under Temporary Regulation 1.162-3T also provide guidance for the treatment of materials and supplies and rotable and temporary spare parts.
1|2|3|4|5|6|7|9| 11| 06.08.2012 - The Tangible Property "Repair" Regulations : Improvement to Tangible Property
The temporary regulations provide that generally a taxpayer must capitalize amounts paid to improve a unit of property owned by the taxpayer.
1|2|3|4|5|6|7|9| 11| 06.08.2012 - The Tangible Property "Repair" Regulations: Unit of Property
In order to understand whether or not there has been an improvement to tangible property required to be capitalized under the temporary regulations, it is essential to understand the unit of property for that purpose. For example, if you replace the roof on your building, if the unit of property is the roof, then replacing it would clearly be a material improvement. If the unit of property is the building, then it might not be as clear to say that the building was improved by replacing the roof. Therefore, the temporary regulations define the unit of property rules for the purposes of section 263(a).
1|2|3|4|5|6|7|9| 11| 06.08.2012 - The Tangible Property "Repair" Regulations: Asset Accounting and Dispositions
The temporary regulations allow taxpayers to account for MACRS property by either treating each asset as an account (a “single asset account” or “item account”) or combining two or more assets in a single account (as a “multiple asset account” or “pool”). A taxpayer must account for a MACRS asset using a single asset account when the asset is used both in a trade or business and in a personal activity, the asset is placed in service and disposed of during the same tax year, when the general asset account treatment terminates, if accounted for in a multiple asset account and is disposed of, or if a component of a larger assets and is disposed.
1|2|3|4|5|6|7|9| 11| 06.08.2012 - Change in Accounting Method to Comply with the Tangible Property Regulations
The IRS released two Revenue Procedures, 2012-19 and 2012-20, in March 2012 to explain the procedures by which a taxpayer may obtain IRS's automatic consent to change to the accounting methods provided in recently issued temporary regulations under IRC Section 162 and 263.
2|1|9|6|5| 11| 08.20.2012 - Now is the Time to Start Next Year’s Tax Planning
The most recent tax deadline has long-since passed and the furthest thing from most people’s minds is the next one. However, 2013 is expected to be a year of uncertainty due to potential major changes regarding tax laws and rates, and the time to start planning for it is right now.
1|2|3|4|5|6|7|8|9| 11| 07.03.2012 - The Health Care Act Deemed Constitutional by the Supreme Court
On June 28, 2012, the U.S. Supreme Court (the Court) made a historic decision on the Patient Protection and Affordable Care Act (PPACA) and its companion law, the Health Care and Education Reconciliation Act (HCERA). In a 5 to 4 decision, the nation's highest court upheld all of the tax provisions and health insurance reforms that were part of the overall health care reform legislation passed in 2010 except for a certain Medicaid provision involving state funding. Critical to the Court's approval of President Obama's signature health care law was its finding that the new law’s mandatory penalty for certain individuals who fail to obtain “minimum essential health insurance coverage” was constitutional based upon Congress' power to tax.
1|2|3|4|5|6|7|8|9| 12|15| 09.23.2015 - When BYOD is as Common as a Morning Coffee
As the practice of “Bring Your Own Device” (BYOD) to work becomes as much of a business norm as a morning coffee, the question becomes how will companies remain secure as businesses — especially those that fall under compliancy rules (such as PCI and HIPAA) — which are still required to comply with regulations when allowing the BYOD model.
5| 1| 07.13.2012 - Upcoming Accounting Changes for CCRCs
In late May, the Financial Accounting Standards Board (FASB) finalized its deliberations on a rule change that will impact the way Continuing Care Retirement Communities (CCRCs) account for refundable entrance fees. Though the related Accounting Standards Update (ASU) has not yet been issued (issuance is expected later this year), the planned accounting changes may be significant to certain organizations.
3|5|7| 11| 07.30.2012 - Tax Update: 2011 Form 990
The 2011 Form 990, Return of Organization Exempt from Income Tax, has been revised with several significant changes by the Internal Revenue Service (IRS). As we approach the 2011 Form 990 tax filing season for exempt organizations with fiscal year-ends ending in 2012, it is important to be aware of these modifications.
1|2|3|4|5|6|7|9| 10| 08.10.2012 - Hiring Trends Update
The summer of 2012 has seen a marked increase in new job openings across different industries for accounting and finance professionals. We have recently seen a much higher demand for professionals on a permanent and temporary basis. We are recognizing that in addition to hiring a candidate directly, there has been a shift in the way companies are hiring. They are focusing on hiring on an as needed basis for project related work. This gives companies the ability to help alleviate the work load within their existing departments without having to add to their head count.
5| 1| 08.30.2012 - The Medicare Recovery Audit Process and Skilled Nursing Facilities
This article will discuss how the Medicare Recovery Audit Process could affect skilled nursing facilities and key items that all skilled nursing facilities should consider.
1|2|3|4|5|6|7|9| 09.10.2012 - The 2012 Survey of Connecticut Businesses
For over a decade, BlumShapiro and CBIA have partnered to produce the annual Survey of Connecticut Businesses, which explores the economic, fiscal, and regulatory climates for companies of all types and sizes throughout the state. This study takes the pulse of Connecticut’s business community and examines business leaders’ forecasts for conditions over the next 18 months. Findings help shape our government affairs agenda and set priorities for policymakers in order to strengthen the state’s economic competitiveness and grow jobs.
1|2|3|4|5|6|7|9| 09.17.2012 - CBIA/BlumShapiro Release the 2012 Survey of Connecticut Businesses
BlumShapiro and the Connecticut Business and Industry Association (CBIA) released their annual survey of Connecticut’s businesses on September 7. This year’s survey shows that while some progress is being made and profitability is up, Connecticut continues to struggle to grow in a post-recession economy, and the overall sentiment about Connecticut as a place to do business is still negative.
1|2|3|4|5|6|7|9| 10.15.2012 - Will Online Sales Tax Issues Finally Be Put to Rest?
For well over a decade, states have been grappling with the issue of collecting sales tax from online sales. Growing internet shopping has state tax commissioners scratching their heads trying to hatch ideas for getting in on those sales tax revenues.
1|2|3|4|5|6|7|9| 3| 10.16.2012 - Pay or Play—What Is It, What You Need to Know and Is There a Penalty in Your Future?
Among other things, the Patient Protection and Affordable Care Act (ACA) imposes new obligations on “large employers." These rules (outlined in Internal Revenue Code § 4980H) will increase reporting obligations for all affected employers and may increase costs for certain employers.
1|2|5|6|9| 10.30.2012 - Major Changes to Gift/Estate Taxes Looming By Year’s End
There could be significant changes coming by the end of 2012 to laws regulating taxes on gifts and estates, so if you have not already planned for these changes, now is the time to prepare for the possible impact.
1|2|3|5|6|7|9| 1| 11.14.2012 - FASB Issues Guidance to Simplify Impairment Testing for Indefinite-lived Intangible Assets
On July 27, 2012, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2012-02 to simplify impairment testing of indefinite-lived intangible assets other than goodwill. ASU 2012-02 applies to intangible assets that are not subject to amortization. Examples of intangible assets subject to the revised standard include indefinite-lived trademarks, licenses and distribution rights.
5|9| 1|11| 01.30.2013 - New Reporting Requirements for HUD-Insured Mortgages Under Section 232
There are new reporting requirements that are set to take effect in 2013 for nursing home operators that have a HUD insured mortgage under Section 232.
4|3|2|1|9|7|6|5| 11| 01.14.2016 - It’s Tax Time Again and the IRS Sent Me a Personal Identification Number
If your 2014 tax return was rejected by the IRS because a return had already been filed, then you should have submitted Form 14039, Identity Theft Affidavit. Once you file Form 14039, the IRS will assign you a six digit Identity Protection Personal Identification Number (IP-PIN). You will need to use your assigned IP-PIN number for the subsequent year’s tax return.
5| 12.17.2012 - Medicare Payments Continue to Be in the Spotlight for OIG
On November 13, 2012, the Department of Health and Human Service’s Office of the Inspector General (OIG) released a report addressed to the Center for Medicare and Medicaid Services (CMS) titled “Inappropriate Payments to Skilled Nursing Facilities Cost Medicare More Than a Billion Dollars in 2009”. Based on that title it appears the department was trying to get the attention of everyone involved in the skilled nursing community. The overall dollar impact of this was $1.5 billion and represented 5.6% of the $26.9 billion which was paid to skilled nursing facilities in 2009.
9|7|6|5|4|3|2|1| 1|11| 10.22.2014 - Affordable Care Act Update: Employers Get First Look at Health Insurance Information Reporting
Since passage of the Affordable Care Act, several key requirements for employers have been delayed, including reporting of health coverage offered to employees, known as Code Sec. 6056 reporting. However, as 2015 nears, and the prospects of further delay appear unlikely, employers and the IRS are preparing for the filing of these new information returns. While the reporting requirement is not mandatory until 2015, employers must start planning now for how the required information will be acquired and reported, and by whom it will be reported.
7|5|3| 03.06.2013 - How to Foster an Effective Non-Profit Board of Directors
In today’s world, non-profit organizations are highly scrutinized and are struggling to survive. There are higher demands for services and diminishing resources. In order to face these challenges, it is more important than ever that the Board of Directors is effective and provides solid leadership. Executive management is in a position to help ensure the board is well prepared to lead the organization.
9|1|2|5|6| 11| 01.29.2013 - Tax Breaks Retroactively Reinstated and Extended by the 2012 Taxpayer Relief Act
As part of the much discussed ‘Fiscal Cliff’ legislation which addresses many of the expiring Bush era tax cuts, provisions of the American Taxpayer Relief Act of 2012 retroactively reinstated various business and individual tax breaks which expired at the end of 2011. While legislation was designed and passed in 2013, taxpayers, as in years before 2012, once again have the opportunity to benefit from the following items retroactively to 2012.
5| 01.29.2013 - The Mercer Report on the State of Connecticut Medicaid Long Term Care Demand Projection
The Department of Social Services (DSS) presented its plan on rebalancing today with the unveiling of the much anticipated Mercer report on the State of Connecticut Medicaid Long Term Care Demand Projection.
3|5|7| 11| 03.06.2013 - IRS Exempt Organization Division Publishes 2013 Workplan
The Exempt Organization division of the Internal Revenue Service (IRS) recently issued its 2013 Workplan. The purpose of the workplan is to provide an update on various ongoing projects that have been undertaken by the IRS with respect to exempt organizations, as well as new projects that the IRS will begin in 2013. Below is an overview of some of these key projects. As a reminder, all organizations should review their operations, policies and activities in order to minimize risk and ensure compliance with IRS requirements.
3|5|7| 03.06.2013 - Federal OMB Proposes Significant Changes to Federal Grantee and Audit Requirements
On February 28, 2012, the federal Office of Management and Budget (OMB) issued an invitation to comment on a concepts document which outlined potential changes in federal grantee requirements and the federal single audit. The purpose of the changes is to streamline grantee and audit requirements while maintaining accountability. That proposal was covered in our spring 2012 newsletter.
3|5|7| 1| 03.12.2013 - Financial Reporting Update
The Financial Accounting Standards Board (FASB) Not-for-profit Advisory Committee (NAC) is continuing to develop recommendations intended to improve the nonprofit financial reporting model. The NAC is reconsidering whether the current net asset classification scheme – unrestricted, temporarily restricted and permanently restricted, based on donor intent, is the most relevant and meaningful classification scheme.
1|2|3|4|5|6|7|9| 11| 04.11.2013 - The Affordable Care Act: Very Soon, Businesses Need to Decide if They Are Going to “Play or Pay”
Come the start of next year, hundreds of businesses across Connecticut will have to have answered a critical question when it comes to healthcare – do they want to play or pay?
1|2|3|4|5|6|7|9| 6| 04.18.2013 - Calculating Damages of Early Stage Intellectual Property Infringement
As technology advances and its usage becomes even more widespread, intellectual property law and the related litigation becomes more relevant.
5| 1| 04.23.2013 - Whitepaper: Accounting for Refundable Advance Fees - Understanding the Financial Statements of CCRCs
This paper will discuss the accounting for refundable entrance fees (before and after the change promulgated by the FASB), and how users of the financial statements might analyze the financial viability of a CCRC. It might also be used as a guide to assist CCRCs in discussing the accounting changes with interested parties.
5| 1| 05.07.2013 - Rhode Island Price-Based System Postponed
After the initial test of the progress of the implementation of the Price-Based System, the Office of Health and Human Services (OHHS) has agreed to postpone the implementation date to June 1, 2013.
1|2|3|4|5|6|7|9| 05.17.2013 - Five Years Later, It’s Still About Jobs
What Connecticut needs most to achieve a real and sustained economic recovery is still, not surprisingly, more jobs. But we won’t get those jobs without both a housing recovery and a more confident business community.
1|2|5|6|9| 11| 05.17.2013 - Massachusetts Small Businesses Eligible for New Wellness Tax Credit
Promoting employee wellness through workplace education, incentives and other programs can have a direct and positive impact on productivity while also helping to control employer healthcare costs. A 2011 study published by the American Journal of Health Promotion found that healthcare costs rose at a 15 percent slower rate among employees who participated in wellness programs. Now small businesses in Massachusetts can earn a state tax credit worth 25 percent of the cost to implement qualified wellness programs.
5| 1| 05.23.2013 - Potential Nursing Home Reimbursement Change
We recently became aware of a potentially major item impacting the application of rate reductions to skilled nursing homes. The governor’s budget outlined cuts of approximately 1.2% to skilled nursing homes. Since these cuts were based on a reduction of the additional provider tax funds that were received in the prior year, it was anticipated the cuts would be done flat across the board to all skilled nursing facilities.
5|9| 06.13.2013 - White paper: Perspectives on the Senior Living Industry and the Role of Strategic Planning
These are interesting and exciting times in the senior living industry. National Healthcare Reform (Obamacare), Accountable Care Organizations (ACOs), Medical Homes, Health Care Exchanges, Sequestration, Bundled Payments, Mergers and Affiliations, Rebalancing between institutional and home and community based services, Technology Changes, Risk management and many other items are creating unprecedented change and influence.
1|2|3|4|5|6|7|8|9| 7|8| 06.10.2013 - White paper: Your Finance Function - Where do you spend your time?
In our last white paper, we began with an adage that tends to hold true for most organizations: “the thinking that got you where you are may not be the thinking that propels you to the next level”. Your finance function will change, as change is an inevitable reality in a competitive business landscape. The pace is fast. As we know from experience, one day runs into the next and when a finance organization takes a breath, it may find itself with processes that are not as effective as they once were.
5| 07.26.2013 - First-Year Results of Massachusetts Pioneer ACOs
In May of 2012 BlumShapiro wrote an article on the five Massachusetts organizations that were selected to participate in the Pioneer Accountable Care Organization (ACO) Model (the Model): Atrius Health Services, Beth Israel Deaconess Physician Organization, Mount Auburn Cambridge Independent Practice Association, Partners Healthcare and Steward Health Care System. The Model is part of the Affordable Care Act’s efforts to test the impact of several innovative payment arrangements.
5| 7| 06.26.2013 - Compliance Programs Mandatory for Skilled Nursing Homes and Nursing Facilities in 2013
While it seems like compliance programs have been mandatory for skilled nursing homes and nursing facilities since the late 1990s, in reality they have, up until now, only been suggested by the Office of the Inspector General (OIG). As part of the Affordable Care Act (the Act) they have become mandatory as of March 23, 2013. Although the Act requires the Department of Health and Human Services and the OIG to establish core elements for these compliance programs, those elements were not created by the implementation deadline.
9|1|2|3|4|5|6|7| 11| 07.02.2013 - Many Tax Planning Questions Arise After Supreme Court's DOMA Decision
On June 26, the U.S. Supreme Court held that Section 3 of the federal Defense of Marriage Act (DOMA) is unconstitutional (E.S. Windsor, SCt., June 26, 2013). Immediately after the decision, President Obama directed all federal agencies, including the IRS, to revise their regulations to reflect the Court's order. How the IRS will revise its tax regulations - and when - remains to be seen; but in the meantime, the Court's decision opens a number of planning tax opportunities for same-sex couples.
3|5|7| 4|5|8| 08.01.2013 - Performing a Risk Assessment for Non-Profit Organizations
There is quite a bit of buzz in the business world about internal controls. We all know you should have good internal control. You hear your accounting firm repeatedly refer to internal control, but it is sometimes a challenge to determine what good controls really are and how you get there.
3|5|7|9| 11| 08.01.2013 - IRS Focuses on Group Exemption
The IRS can recognize a group of organizations as tax exempt if they are affiliated with a central organization. This avoids the need for each of the organizations to individually apply for exemption. A group exemption letter has the same effect as an individual exemption letter except that it applies to more than one organization.
5| 08.22.2013 - Rhode Island Price-Based System Update
We are conducting an informal survey regarding the results of June, the first month of the price-based system. To date, the survey consists of 31% of the Rhode Island nursing facilities representing approximately 49,000 Medicaid paid days.
5| 08.26.2013 - New Compliance Tool to be Available Soon for Skilled Nursing Facilities
The Centers for Medicare and Medicaid Services (CMS) has contracted with TMF Health Quality Institute to produce the Program for Evaluating Payment Patterns Electronic Report (PEPPER) for Skilled Nursing Facilities (SNF). CMS has historically prepared these reports for hospitals. Your facility should begin receiving these reports this fall in the mail addressed to the administrator. These reports cover the most recent fiscal year, October 1 through September 30, and will compare your facility’s data to the corresponding state data, your fiscal intermediary’s data from its jurisdiction and national statistics for the last three years.
5| 09.13.2013 - New Rhode Island Skilled Nursing Medicare Rates and Ruling on Hospital Observation Days
In August, CMS published a final rule on hospital inpatient admissions (among other items), providing clarity on how payments will be provided for inpatient status. This final rule addresses hospital admission procedures but has a direct impact on the required three-day hospital stay as a qualifying event for Medicare payment at a skilled nursing facility.
1|2|5|6|9| 2| 11.14.2013 - Why Exit Planning? Why Now?
As advisors, we know that business owners who create business plans are able to react more quickly to new events—events of the past few years in this economy and this world come to mind—than those who don’t.
1|2|3|4|5|6|7|9| 3| 11.16.2013 - Two Things Your Employee Benefit Plan Cannot Live Without
It is not uncommon in the retirement plan marketplace for plan sponsors to place the responsibility of investment selection on the participants in the plan. However, the fiduciary responsibility remains with the plan sponsor, who is charged with oversight over the plan. The Employee Retirement Income Security Act of 1974 (ERISA) was designed to protect participants, not the plan administrator or the plan sponsor.
1|2|3|4|5|6|7|9| 12.17.2013 - 2013 – Flashback to 2000
This year has brought many changes to the tax landscape. The top rates have been increased and deductions are being phased out. Although we knew this was coming, reality has set in and it is time to deal with it. As we compare 2013 to 2012 it is very likely that if you are affected by the higher tax rates and phase-out of deductions, you could see a 15% to 20% increase in your tax bill. As 2013 comes to an end there are three numbers you should keep in mind.
9|7|6|5|4|3|2|1| 1|2|4|6| 07.11.2017 - Financial Statement Red Flags
The last 15 years have produced some of the most notable financial statement frauds in U.S. History, including: Enron, WorldCom, Tyco, HealthSouth and AIG. The magnitude of the losses associated with recent accounting scandals continues to inform users of financial statements about the importance of recognizing financial reporting red flags. These red flags are often indicative of underlying operational or economic distress.
3|5|7| 01.15.2014 - Update on The Non-Profit Financial Reporting Model
As you may recall from prior newsletters, the Not-For-Profit Advisory Committee (NAC) of the Financial Accounting Standards Board is re-evaluating the non-profit financial reporting model. Their focus is on improving net asset classification requirements and information provided in the financial statements and footnotes about liquidity, financial performance and cash flows.
3|4|5|7| 01.16.2014 - OMB Issues Final Guidance Revising Grantee and Auditor Requirements
In prior newsletters we discussed the federal Office of Management and Budget’s (OMB) proposals for revising grantee and auditor compliance requirements with regard to federal grants. The revisions were made for the purpose of streamlining requirements to promote efficient grant administration, although in the end there was less trimming of requirements and more of a consolidation of prior requirements into one document, which is still an improvement.
9|2|3|4|5|6|7| 1| 01.27.2014 - FASB Issues New Standards to Simplify Private Company Accounting for Goodwill and Interest Rate Swaps in Certain Instances
On January 16, 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates 2014-2 Intangibles – Goodwill and Other: Accounting for Goodwill (a consensus of the Private Company Council) and ASU 2014-3 Derivatives and Hedging (Topic 815): Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps—Simplified Hedge Accounting Approach (a consensus of the Private Company Council). These new standards will allow private companies simplified alternatives to existing accounting principles for goodwill and certain receive-variable, pay-fixed interest rate swaps.
9|1|2|3|4|5|6|7| 3| 01.27.2014 - Errors in Employee Benefit Plans – What are Your Options?
No plan sponsor wants to find an error in their employee retirement plan, but mistakes happen and no plan is perfect. The key to avoiding severe penalties and tax qualification issues is to identify and correct mistakes in a timely manner. If plan sponsors roll the dice and hope for the best, corrections can get very expensive. Both the Department of Labor (DOL) and the Internal Revenue Service (IRS) offer various correction programs to facilitate the correction of errors found in employee benefit plans.
1|2|3|4|5|6|7|9|10|13|12|11|14| 09.01.2017 - Tips to Prepare for the Employee Benefit Plan Year-End Audit
Many companies are in the process of gathering information for the year-end audit of their employee benefit plan. This article provides a checklist of review procedures the plan sponsor should complete in order to fulfill and provide support of compliance with some of their fiduciary duties. Completing these procedures will help your organization prepare for the employee benefit plan year-end audit, as well as provide strong fiduciary oversight. This is not a comprehensive list, but rather a reminder of the more common areas which are often overlooked.
5|8| 02.25.2014 - HIPAA Compliance: When Was The Last Time?
A little over a year has passed since modifications to the HIPAA privacy, security, enforcement and breach notification rules under the HITECH Act were announced. Although the earliest impact of these rules was scheduled for March 26, 2013, all HIPAA-related documents and contracts must be in compliance with the new rules no later than September 22, 2014. The 138-page document outlines a few key points.
3|5|7| 1|7|11| 03.25.2014 - Best Practices for Developing Compensation for Non-Profit Organizations
Non-profit compensation can often be a challenge for many organizations which want to recruit top leadership talent. They want the best and brightest to lead their organizations, but they also must stay within reasonable compensation ranges to avoid scrutiny and misuse of donors’ dollars. That is why the IRS asks questions on how compensation is set on their annual Form 990. An organization’s form 990 can be accessed by the public and includes questions on how compensation is determined, and discloses compensation for the organization’s highest paid employees. Therefore, it is critical that non-profit boards and executive committees understand the steps to take to determine fair and reasonable executive compensation.
3|5|7| 1|7| 03.25.2014 - Cultivating a Relationship Between the Finance and Development Offices
It is not uncommon for the relationship between the finance and development offices at non-profit organizations to be strained or non-existent. Yet this relationship is probably one of the most important within a non-profit organization, especially for those organizations that rely heavily on donations and grants. Poor communication between these two offices can result in the improper receiving and handling of contributions and, ultimately, lost funding and upset donors.
3|5|7| 1|7| 03.25.2014 - The New York Non-profit Revitalization Act of 2013
New York state laws governing non-profit organizations have been overhauled. The Non-profit Revitalization Act of 2013 (the Act) includes substantial reforms that will reduce red tape while enhancing governance and oversight of non-profits. Under the new laws, non-profit organizations will now be able to incorporate, dissolve and merge more easily, communicate and hold meetings using modern technology and enter transactions without having to go to court.
7|3|5| 07.11.2014 - FASB Progresses Toward Issuance of Exposure Draft to Redesign the Non-Profit Financial Reporting Model
As we have discussed in previous newsletters, the Financial Accounting Standards Board (FASB) is working on a project to redesign the nonprofit financial reporting model in order to provide more useful, transparent and consistent information to financial statement users. The primary areas likely to be impacted by the changes include net asset classification, indicators of financial performance, expense reporting, the statement of cash flows and information about liquidity and required disclosures.
1|2|3|4|5|6|7|8|9| 7|9|12| 05.19.2014 - Is Cloud Computing Right for Your Company?
With all of the hype surrounding the convenience and efficiency of cloud computing, business owners often ask whether it’s worth moving their financial applications to the cloud. You’ve probably wondered this yourself. The benefits of the cloud are real, but the risks can be, too. What’s important is that you look at the unique features of your company and determine whether the cloud is right for you. In contemplating a switch to cloud computing, one of your first steps should be to consider the potential benefits given your company’s work style, culture and location(s).
1|2|3|4|5|6|7|9| 3| 05.19.2014 - Employee Benefit Plan Fiduciaries: What is Your Responsibility?
As a fiduciary of an employee retirement plan, it is important to understand your responsibilities as well as the responsibilities of the other fiduciaries of the plan. An understanding of these responsibilities can be obtained by reviewing various plan instruments, including the plan document and related adoption agreement, trust document, service agreements, collective bargaining agreements and internal policies and procedures manuals. This article provides a brief description of the key parties to a retirement plan (which are generally the fiduciaries of the plan) and their responsibilities.
5| 1| 05.29.2014 - ZPIC Audits: How Can Your Organization Prepare?
In its continual mission to uncover improper claims, Medicare has increased the presence of its Zone Program Integrity Contractors (ZPICs). This ZPIC emergence is being driven largely by the transition in the national RAC (Recovery Audit Contractor) contract and the required suspension of document requests to providers until the new contract is awarded. ZPIC auditors have many similarities with RAC auditors. Consistent with RAC auditors, ZPICs are charged with trying to identify overbillings, up-coded bills and abuse of the system (whether intentional or unintentional). And, just like RACs, ZPICs make onerous document requests and do not allow long periods of time in order to complete those requests. However, there are a few key differences.
5| 1|7| 05.29.2014 - ACOs and Long-Term Care – Prepare to Be a Partner of Choice
Since 2011, provisions in the Affordable Care Act (ACA) have established Accountable Care Organizations (ACOs) throughout the nation. An ACO is a group of coordinated health care providers that agree to be responsible for delivering quality, appropriate, and efficient care to groups of patients. It is characterized by a payment and care delivery model that ties provider reimbursement to quality metrics and reductions in cost of care for assigned populations.
9|1|2|3|4|5|6|7| 1|3| 06.17.2014 - Reducing or Suspending Safe Harbor Contributions Mid-Year
Beginning with plan years after 2014, under Treasury Regulation 9641, 401(k) safe harbor matching contributions may be reduced or suspended mid-year under the same circumstances that apply to safe harbor non-elective contributions.
1|2|3|4|5|6|7|9| 1| 06.17.2014 - Revenue Recognition Changes… Are you Ready?
As the business climate continues to evolve and become more global, it has become increasingly important to ensure comparability of financial information reported by companies around the world. Accounting Standards Update 2014-09, Revenue from Contracts with Customers (the Update), was a result of a joint project between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) with the goals of clarifying the principles regarding revenue recognition and developing a common revenue standard for both U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
3|5|9|7| 11| 07.16.2014 - Using Form 990 for Organizational Improvements
While many non-profit organizations may be exempt from income taxes, they are not exempt from the federal government’s recordkeeping requirements. Among those requirements are tracking revenues and expenses and reporting those items to the Internal Revenue Service (IRS) by way of Form 990. Most importantly failure to file a Form 990 for three years results in the automatic revocation of exempt status. Reinstatement can be costly, even under the expedited process implemented in 2014 by the IRS. For a small organization, reinstatement can take a substantial bite out of its bank balance.
1|2|5|6|9| 11| 07.16.2014 - Tax Changes in 2015 Rhode Island Budget Bill Will Impact Businesses and Individuals
Last month, Rhode Island Governor Lincoln Chafee signed the state’s fiscal year 2015 budget bill. The bill enacts widespread changes to the Rhode Island tax system across a number of tax areas. The most significant changes will be to the corporate income tax, but changes were also made that impact both personal income tax and the estate tax.
1|2|3|4|5|6|7|9| 11| 07.16.2014 - Connecticut Tax Legislation Highlights: 2014 Session
The recently concluded 2014 legislation session of the Connecticut General Assembly passed (with the governor’s approval) important broad-based tax measures which will impact individual and business taxpayers. Following is a brief explanation of the enacted legislation which will likely have the broadest impact in the areas of individual income taxation, sales and use taxation, property taxation and business entity taxation.
5| 1|7| 07.18.2014 - Impact of the 2014 Office of the Inspector General Work Plan on the Nursing Home Industry
The Department of Health and Human Services' Office of Inspector General (OIG) has issued its 2014 Work Plan, and five items have been identified as areas of review for nursing homes. The items identified include billing, administrative and quality of care issues. The five items (directly taken from the OIG's work plan) are identified in this article.
5| 07.21.2014 - New Billing Requirements for Medicare Advantage Plans
Effective with dates of service beginning July 1, 2014, the Centers for Medicaid and Medicare Services (CMS) is requiring Medicare Advantage plans to report Health Insurance Prospective Payment System (HIPPS) codes with all of their claims for care delivered to skilled nursing facilities and home health agencies.
5| 07.21.2014 - Office of Inspector General (OIG): List of Excluded Individuals and Entities (LEIE)
The OIG is required by law to exclude individuals and entities convicted of certain criminal offenses from participation in all federal healthcare programs.
1|2|3|4|5|6|7|9| 3| 08.18.2014 - Pension Plan De-Risking Trending Upwards
Among the many trends seen in the pension plan arena over the past several years is the continued annuitization of defined benefit plans. Large and small companies continue to investigate strategies to lower their pension liabilities and shift the obligations from the sponsoring company to an insurance company.
5| 08.27.2014 - Pepper Reports Updated for 2013 Claims Information
The Centers for Medicare and Medicaid Services (CMS) has again contracted with TMF Health Quality Institute to produce a second round of Program for Evaluating Payment Patterns Electronic Report (PEPPER) reports for Skilled Nursing Facilities (SNF). Unlike the first round of reports which was mailed to your facility, this round of reports is available to the president or administrator of your facility after sign-up via a secure portal at pepperresources.org.
1|2|3|4|5|6|7|9| 1| 09.25.2014 - The Importance of Establishing a Record Retention Policy for Your Organization
As accountants and business consultants, we are often asked how long business records should be saved. Recordkeeping is important because it provides information to support decision-making by management and is generally required by legal retention requirements.
2|1|9|6|5| 1|3| 10.23.2014 - 401(k) Trends: Target Date Funds
Has your plan recently implemented Target Date Funds? Although they have been around for a number of years, Target Date Funds have grown in popularity exponentially in recent years. As plan sponsor fiduciary responsibility is emphasized more and more each year, these investment options have become more popular in 401(k) plans.
5|9| 1| 03.19.2015 - Potential Changes on the Skilled Nursing Facility Medicare Payment Horizon
A report was issued in January 2015, jointly produced by the Medicare Payment Advisory Commission (MedPAC) and the Urban Institute. According to the study, well-documented shortcomings in the design of Medicare’s payment system for skilled nursing facilities (SNFs) have prompted the Centers for Medicare and Medicaid Services (CMS) to make many revisions to the payment system, including shifting payments from therapy care towards nursing care.
1|2|3|4|5|6|7|9| 1|3| 07.18.2017 - Liquidation Basis Accounting Standards for Employee Benefit Plans
With interest rates on the rise, it has become more attractive to plan sponsors to terminate their legacy-defined benefit pension plans. When a plan sponsor decides to terminate an employee benefit plan, they must look to the liquidation basis of accounting requirements for proper presentation of their plan's financial statements.
1|2|3|4|5|6|7|9| 11| 04.13.2015 - New Health Care Provisions Impact Tax Returns
Tax Day on April 15 is fast approaching, and both business and individual filers across the state should be busy preparing their returns in anticipation of the looming deadline. As this is done, filers need to be mindful of one of the most significant pieces of legislation to be signed into law in the past decade — the Affordable Care Act, known colloquially as Obamacare — and the tax implications that exist this year that need to be considered. These include new forms to be filed as well as penalties businesses and individuals face for failing to comply with the ACA.
1|2|3|4|5|6|7|9| 4|8| 04.24.2015 - Fraud and Internal Controls
The most recent recession sharpened a trend already in place across the national economy – companies run leaner today than they did 5, 10 or 15 years ago. The financial difficulties many companies are experiencing have reinforced a movement spurred by technological advances. Mainly, there are fewer people in the workplace handling more responsibilities. Unfortunately for business owners and senior corporate executives, reduction of the workforce equates to fewer supervisors, thus less availability to oversee and audit operations. This condition is an invitation for employees to pilfer from a company -- either by walking off with inventory or inappropriately handling receipts.
5|7| 04.27.2015 - FASB Exposure Draft on Not-for-Profit Financial Reporting Issued
The long awaited exposure draft on non-profit financial reporting was issued on April 22, 2015. The exposure draft (ED), Not-for-Profit Entities and Healthcare Entities―Presentation of Financial Statements for Not-for-Profit Entities has a comment due date of August 20, 2015. No effective date has been proposed in the exposure draft. The ED states that the effective date will be considered after receiving feedback.
5| 1|7| 05.12.2015 - Department of Health and Human Services Plans Shift to Value-Based Payments for Nursing Homes
Earlier this year, the U.S. Department of Health and Human Services (HHS) announced a goal of connecting 85 percent of all traditional Medicare payments to quality measurements by 2016 and 90 percent of such payments by 2018. In addition, HHS indicated an objective of connecting 30 percent of Medicare payments to value or quality based alternative payment models by 2016 and 50 percent by 2018. As a point of reference, approximately 20 percent of payments are currently made through alternative payment models. This represents the first time that HHS has publicized a timeline for the often-discussed transition from quantity based reimbursement to one that rewards providers for quality and value measurements.
5| 1|7| 05.12.2015 - Proposed Fiscal Year 2016 Payment and Policies Changes for Medicare Skilled Nursing Homes
The Centers for Medicare and Medicaid Services (CMS) issued a proposed rule on April 15, 2015 describing the proposed fiscal year 2016 Medicare payment rates for skilled nursing facilities (SNF). This proposed rule also continues the commitment to shift Medicare payment from volume to value.
1|2|3|4|5|6|7|9| 1|4|7| 05.15.2015 - Payroll Fraud – An Often Overlooked Risk and How to Address It
We often hear or read stories in the news about fraud occurring within businesses. Frequently, such businesses are victimized when an individual in a position of financial authority makes unauthorized withdrawals or disbursements from bank accounts, or misdirects cash deposits. In response to these risks, controls are often implemented to prevent and detect fraud relating to cash, but what is often overlooked is the potential for payroll fraud.
4|5|7| 1| 05.27.2015 - Grantee Implementation of Federal Uniform Administrative Requirements, Cost Principles and Audit Requirements
This article addresses how to implement UG from a grantee perspective and how to transition from the former requirements to UG.
1|2|5|6|9| 11| 06.12.2015 - Connecticut’s Tax Budget Increases Taxes
During its regular session ending on June 3, 2015, the Connecticut General Assembly passed a $40 billion biennium budget (House Bill, H7061). The budget is expected to increase revenues by over $2 billion over the next two years (July 1, 2015 through June 30, 2017), largely by raising taxes and canceling previously approved tax exemptions, tax cuts and phase-outs.
1|2|5|6|9| 7| 06.12.2015 - The Time for Family Businesses to Start Thinking About Succession Planning Is Now
One challenge family owned businesses are now facing is what happens when the current generation of leadership retires. Will the sons and/or daughters take over? Will it remain partly in the family with other relatives? Will the next generation be unwilling (or perhaps unqualified) to run the business, requiring current management to consider selling or looking to outside investors? These questions are extremely important and extremely real, and they point to one clear business strategy that must be employed—succession planning.
6|5|4|3|2|1|9|7| 11| 02.04.2016 - How Long Should I Keep My Tax Records?
One record retention guideline is often misconstrued; the retention guideline pertaining to tax returns and related documents. A common misconception is that the Internal Revenue Service can only audit tax returns related to the last three years.
1|2|5|6|9| 11| 07.10.2015 - Malloy Signs Connecticut Budget, Many Tax Increases Remain
On June 30, 2015, following up on its regular session ending on June 3, 2015, the Connecticut General Assembly passed a $40 billion biennium budget (Senate Bill, 1502, a budget implementation bill, amending House Bill 7061) and the governor has signed it.
9|1|2|5| 11| 07.06.2015 - Rhode Island’s New Budget: What Does it Mean for Taxpayers?
On June 14, Governor Gina Raimondo’s inaugural budget breezed unanimously through the House of Representatives in around the same amount of time as a typical Boston Red Sox game. A week later, the state senate quickly gave the 500-page bill its seal of approval with a 35-3 floor vote. And last Tuesday afternoon, with a sweep of Governor Raimondo’s pen, the state of Rhode Island officially began operating under a brand-new $8.67 billion budget. So what does this year’s state budget mean for Rhode Island taxpayers and business owners?
1|2|3|4|5|6|7|9| 1|3| 07.21.2015 - Tibble v. Edison: Lessons for 401(k)/403(b) Plan Sponsors
In 2007 a lawsuit was brought against the Edison International company sponsored 401(k) plan. The suit alleged that the plan sponsor and its fiduciaries failed to monitor the fees charged to the company retirement plan. There are five key outcomes from this case that plan sponsors and fiduciaries should pay close attention to. These lessons, outlined below, should be implemented by all sponsors of company retirement plans.
1|2|3|4|5|7|9| 1|4| 07.21.2015 - Ten Tips to Help Businesses Avoid Payroll-Related Fraud
Payroll is one of the largest, if not the largest, expense on a corporate income statement. Accordingly, companies should design, implement and maintain a system of controls over payroll in order to ensure that transactions are properly authorized and recorded. Payroll-related fraud is not industry specific and can be difficult to detect. It is also one of the most common.
1|2|3|4|5|6|7|9| 1|3| 08.21.2015 - Penalty Relief for Form 5500-EZ Late Filings
In 2014, the IRS established a one-year pilot program that provided penalty relief for failure to timely file annual reports for one-participant retirement plans. The feedback from the pilot program was favorable, and it was suggested that a permanent penalty relief program be put in place. In June 2015, the IRS issued Revenue Procedure 2015-32, which establishes a permanent penalty relief program for filers of Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan.
5| 1| 08.25.2015 - Rhode Island Medicaid Retroactive Rate Adjustment
In a meeting at the Executive Office of Health and Human Services (EOHHS) on August 20, 2015, it was disclosed that the EOHHS had not satisfied all of the technical requirements for making the change from the cost-based to the price-based methodology for nursing home payments until May 3, 2013. As a result, there will be retroactive adjustments to all providers for the period October 1, 2012 through May 3, 2013.
5| 1| 09.09.2015 - BlumShapiro Announces Massachusetts Long-Term Care Benchmarking Tool
BlumShapiro has obtained the Massachusetts long-term care facilities cost report data from the Center for Health Information and Analysis (the Center) (2013 is the most recent period of data currently available from the Center), which has information for over 400 Massachusetts long-term care facilities. Using this data, BlumShapiro has created a data benchmarking tool that calculates many statistics for Massachusetts long-term care facilities.
5| 1| 09.29.2015 - DSS Announces 2015 Medicaid Wage Enhancement Program
On September 22, 2015, the Department of Social Services (DSS) released program details related to the Medicaid reimbursements for eligible direct and indirect care employees wage increases discussed as part of this year’s legislative session, as well as benefit increases proposed by DSS.
9|5| 11| 10.29.2015 - Preparing for the ACA: Are You Ready?
The ongoing implementation of the Affordable Care Act (ACA) has put many organizations in frenzy mode as they strive to meet the new regulations introduced by the law. And while the ACA will impact certain organizations differently, they all have at least one thing in common: their reporting obligations to the IRS will increase tremendously.
3|5|7| 1| 11.13.2015 - Recovering Indirect Costs from Federal Grants Under Uniform Guidance
In this article, we’ll take a look at recovering indirect costs from federal grants under UG. One of the common issues our grant-driven clients face is ensuring they are recovering the maximum amount of indirect costs from their federal grants.
1|2|5|6|9| 01.05.2016 - Protecting Americans from Tax Hikes Act of 2015
Included in the fiscal year 2016 Appropriations Package was the “Protecting Americans from Tax Hikes Act of 2015” (PATH). This legislation extends and in some cases modifies existing law permanently or at least for a few years. The PATH legislation covered extender, administrative, miscellaneous and trade relation topics among other items in its many pages. Selected tax items we believe are of interest to our clients and their peers follow:
5|3|7|9| 11| 02.09.2016 - IRS Audits on the Rise for Tax Exempt Organizations
Whether you are a board member, executive director, accounting manager or CFO of a non-profit organization, you should be aware that the Internal Revenue Service is increasing their audits of the Form 990.
9|1|2|5|6| 11| 01.06.2016 - Connecticut December Special Session Passes Tax Legislation
On December 8, 2015 the Connecticut General Assembly passed the state’s third major budget and revenue bill (Senate Bill 1601). Subsequently, on December 29, 2015 the governor signed Public Act No. 15-1 containing a number of significant retroactive and prospective tax law changes that address tax legislation passed earlier this year (see Malloy Signs Budget and CT Tax Budget articles) as well as including new tax legislation to provide tax relief to individuals and Connecticut-based businesses.
8|9|1|2|3|4|5|6|7| 8|15| 04.26.2016 - Ransomware - The New Pandemic
What is ransomware? How can you mitigate risk? What do you do if infected by ransomware? Learn about all of the above in this compelling and information packed article.
8|9|1|2|3|4|5|6|7| 8|12|15| 06.03.2016 - Are mobile phones your biggest weakness to cyber threats?
Our phones are no longer only for making calls, they’ve evolved into our hand-held personal computers. With this, comes the storing of sensitive data so it's easily available to us―emails, calendars, contact information, passwords, payment data, etc. While these features are great for the traveling or telecommuting employee, it’s also attractive to hackers.
9|1|2|3|4|5|6|7| 11| 06.08.2016 - Employers Need to Prepare Now For New Federal Overtime Guidelines
Regulations released by the United States Department of Labor establishing new guidelines under which employees must be paid overtime will have a far-reaching impact on employers throughout Connecticut and the nation. Business leaders now must take the right steps to ensure they are in compliance with these new rules before they take effect in December.
1|2|3|4|5|6|7|8|9| 8|12|15| 06.30.2016 - Cyber Security Facts and Trends Infographic
Learn more about the real costs of cyber attacks with our cybersecurity facts, trends and statistics infographic.
1|2|3|4|5|6|7|9| 11| 08.12.2016 - Affordable Care Act Could Bring Additional Challenges for Employers in 2017
As hard as it may be to believe, the Affordable Care Act (ACA, also known to many as Obamacare) is now more than six years old. It was signed into law amid cheers and protests from competing sides, and in that time has survived dozens of efforts by Congress to repeal it. Through all of that it still exists and requires businesses with more than 50 people to provide health insurance for employees. While the results of the November election could have an impact on its long-term viability, it is safe to say that qualifying businesses would be wise to plan to continue adhering to the law into 2017.
4|5|6|8|9| 15| 08.15.2016 - Five Industries with Growing Cybersecurity Needs
While every industry, business, entity and organization is susceptible to cyber-attacks, 2015 has shown a shift in the industries experiencing the highest incident rates. IBM has recently released the 2016 version of its annual IBM X-Force Cyber Security Intelligence Index – a report that provides readers with an overview and detailed look at the types and volume of attacks out there, the industries that are most affected and the key factors enabling hackers to attack.
1|2|5|6|9| 11| 08.16.2016 - Proposed Treasury Regulations Would Limit Valuation Discounts
A tax planning strategy utilized in reducing gift and estate tax has been taking advantage of valuation discounts for family transfers of closely held businesses. However, this strategy may soon evaporate with the recent issuance of regulations limiting valuation discounts.
3|5|7|9| 1| 08.22.2016 - FASB Issues Much Awaited Not-For-Profit Financial Reporting Standard
On August 18, 2016, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements for Not-for-Profit Entities, to improve financial reporting for nonprofit organizations.
1|2|3|4|5|6|7|9| 1|3| 09.01.2016 - When Does Your Retirement Plan Need an Audit?
The Employee Retirement Income Security Act of 1974 (ERISA) establishes standards and rules governing employee benefit plans (401(k), 403(b), Pension, other retirement and health and welfare plans), including independent audit requirements. Generally, all large non-governmental and non-church retirement plans are required to be audited by a qualified certified or licensed public accountant on an annual basis. ERISA also generally requires large funded health and welfare plans (normally indicated by the establishment of a trust to hold plan assets) to be audited on an annual basis.
1|2|3|4|5|6|7|8|9| 15| 09.07.2016 - 8 Lessons Learned from History's Biggest Cyber Attacks
Every day, over 4,000 cyber-attacks occur, nearly three attacks every minute. The sophistication and techniques used by hackers is growing and evolving constantly. Fortunately, we can use the lessons learned throughout the history of cyber-attacks to increase our knowledge and awareness, and in turn, better protect ourselves from cyber-attacks.
8|5|7|9| 15| 09.08.2016 - Securing Medical Records From Cyber Attacks is Imperative
Electronic medical records are an innovation that has greatly helped the overall medical industry, but with this improved access comes an urgent need to protect it. Learn more about HIPPA Compliance, Security Risk Analysis, Medical Record Security, and more.
1|2|3|4|5|6|7|9| 3| 09.27.2016 - How to Select an Auditor for Your Employee Benefit Plan
All employee benefit plans (401(k), 403(b), Pension and other retirement and health and welfare plans) categorized as “large” plans for Form 5500 reporting purposes are required to have an annual audit performed by an independent auditor.
1|2|3|4|5|6|7|9| 3| 11.01.2016 - 401(k) and 403(b) Audit Checklist
It is important to prepare for your annual retirement plan audit to ensure a smooth audit and Form 5500 filing. This checklist is designed as a summary of the items that will typically be reviewed as part of the annual audit of your defined contribution plan (401(k), 403(b) and profit sharing plans). It is not meant to be all-inclusive, but covers the common items requested during an audit of a defined contribution plan.
1|2|3|4|5|6|7|9| 11| 11.14.2016 - What are “excepted benefits” for purposes of the Affordable Care Act (ACA) minimum essential coverage?
The ACA created Code Sec. 5000A whereby individuals must now have minimum essential health insurance coverage, qualify for a health coverage exemption or make an individual shared responsibility payment.
1|2|5|6|9| 11| 11.16.2016 - Looking Past Election Day: Tax Reform on the Horizon
Now that the election is over, the focus of many Americans will be on whether Trump will get his proposed tax policy reform passed through the Republican-held Congress and how the proposed tax policy will affect them.
5|9| 11| 12.28.2016 - Massachusetts Nursing Facility Direct Care Add-On
The Commonwealth of Massachusetts’ FY17 budget includes $35.5M as a reimbursement add-on for wages, benefits and related employee costs of direct care staff at nursing homes. While most nursing homes welcomed these additional funds, many facilities have questions and concerns regarding how to properly spend the funds without being subject to audit penalties or recoupments.
8|1|2|3|4|5|6|7|9| 12| 12.01.2016 - Investing in Technology Helps Businesses Stay Ahead
Everywhere we look, both here in Connecticut and throughout the nation, the largest internal investment being made by businesses is in new technology. Find out how this investment in technology can lead to success for your organization.
3|2|4|5|6|7|9| 11| 06.26.2017 - Senate Unveils Better Care Reconciliation Act of 2017
The future of the Affordable Care Act (ACA) and related taxes is now in the Senate following passage of the American Health Care Act (AHCA) in the House this April. The Senate unveiled their discussion draft, Better Care Reconciliation Act of 2017, on June 22, which contains many tax provision similarities to the House bill in efforts to repeal ACA taxes.
7|9|3|5| 1| 08.16.2017 - Top Trends for Managing Not-For-Profits
The world is moving quickly, and in order for non-profit organizations to survive and continue to do their good works, they need to be nimble and ahead of the curve.
5| 08.30.2017 - How Will Medicare Changes Impact Your Skilled Nursing Facility’s Profitability?
With facilities already operating on a razor thin profitability margin, the potential for multiple reimbursement reductions in the Medicare program could result in more facilities generating operating losses by fiscal year September 30, 2019.
 

Advisors | Auditors | Consultants | CPAs – BlumShapiro is one of the premier Healthcare CPA firms in New England and a Top 100 CPA Firm in the U.S. Our professionals serve medical and dental practices, hospitals, skilled nursing and long term care facilities in Boston (MA), Hartford (CT), Cranston (RI), Shelton (CT), Quincy (MA) and Newton (MA) with audit, tax and business consulting services. We are members of the Association of Long Term Care Managers, Connecticut Assisted Living Association, Healthcare Financial Management Association and the Rhode Island Healthcare Association.