Provider Relief Funds Not Tax Exempt Rules HHS

WASHINGTON, D.C. (July 14, 2020)—The American Association for Homecare (AAHomecare) joined other health care groups in asking Congress to affirm tax-exempt status for recent relief for healthcare providers, as noted in a late June press release. In the latest update to of provider relief funds FAQs, the Department of Health and Human Services (HHS) reinforces the need for Congressional action in declaring the agency view that these funds will be considered as gross income for tax purposes:

May a health care provider that receives a payment from the Provider Relief Fund exclude this payment from gross income as a qualified disaster relief payment under section 139 of the Internal Revenue Code? (added 7/10/2020 – see page 2) No. A payment to a business, even if the business is a sole proprietorship, does not qualify as a qualified disaster relief payment under section 139. The payment from the Provider Relief Fund is includible in gross income under section 61 of the Code. For more information, visit the Internal Revenue Services’ website here.

AAHomecare has indicated it will continue to support the major health care organizations asking Congress to remove this penalty that will increase financial pressures on health care providers bearing the burden of the COVID-19 pandemic and ultimately impact the patients and communities they serve.

Details on Tracking Application Status Also Available

HHS has also added new information on tracking relief applications and payments to the FAQs:

How can a health care provider find more information on the status of their Provider Relief Fund payment or application? (added 7/8/2020 – see page 2) Providers should contact the Provider Support Line at (866) 569-3522 (for TTY, dial 711), if they have questions about the status of their payment or application. When calling, providers should have ready the last four digits of the recipient’s or applicant’s Tax Identification Number (TIN), the name of the recipient or applicant as it appears on the most recent tax filing, the mailing address for the recipient or applicant as it appears on the most recent tax filing, and the application number (begins with either “DS” or “CR”) if they have submitted an application in the Provider Relief Fun Payment Portal.

See the complete CARES Provider Relief Fund FAQs: online version by subject area and full list in PDF format (54 pages)