Harding, Shymanski & Company is honored to be named an IPA Best of the Best Firm and a Top 200 Firm!
IPA’s Best of the Best Firms list recognizes the highest-performing accounting firms focusing on key areas of management, growth, and strategic vision.
The IPA also ranks the top 500 firms in the US by net revenue. This analysis helps identify and contextualize the challenges and opportunities of the previous year.
Beginning on January 1, 2024, many companies in the United States are required to report information about their beneficial owners (i.e., the individuals who ultimately own or control the company). Companies must report the information to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the Treasury Department, through an electronic filing system. The beneficial ownership information (BOI) reporting requirements are part of the Corporate Transparency Act.
Reporting entities. Generally, any corporation, limited liability company, or any other entity that is created by filing a document with a secretary of state or similar office under state or tribal laws, or is formed under foreign law and registered to do business in the United States by filing a document with a secretary of state or similar office under state or tribal laws, is a reporting company that must disclose information regarding its beneficial owners and its company applicants to FinCEN under the Corporate Transparency Act.
However, there are exclusions for heavily regulated entities that already report such information to other federal agencies, or companies with real business activities that are not perceived to be a high risk for money laundering. Additionally, the reporting requirements do not apply to an inactive entity.
Beneficial owner. A beneficial owner is an individual who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, either:
However, beneficial owners do not include minor children; nominees, intermediaries, custodians, or agents; employees; inheritors; or creditors.
Company applicant. A company applicant is the individual who files the document with a secretary of state or any similar office under state or Indian tribe law that:
Further, the individual who is primarily responsible for directing or controlling that filing by another individual is also a company applicant.
Information to be reported. A reporting company must disclose the identity of each beneficial owner of the company and each company applicant. For each individual who is a beneficial owner or a company applicant, the reported information must include:
The reporting company must also provide an image of the identification document used to obtain the identifying number in item four.
Filing deadlines for initial reports. Domestic reporting companies created or registered to do business in the United States and foreign reporting companies registered to do business in the United States before January 1, 2024, must file their initial report with FinCEN no later than January 1, 2025. Newly created or registered companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.
If your company was created or registered on or after January 1, 2025, it must file its initial beneficial ownership information report within 30 calendar days after receiving actual or public notice that its creation or registration is effective. Additionally, penalties may be imposed for failure to file. If you have any questions on this proposed legislation, please contact your HSC service leader or call our office at 800-880-7800.
Join us as we explore the complexities of Certified Registered Nurse Anesthetist (CRNA) billing with insights from a seasoned expert – Karen Schnell, Director of Operations at HSC Medical Billing & Consulting. In this video, we explore key questions about CRNA practice, including:
✅Can a CRNA practice independently without an anesthesiologist?
✅What is Medical Direction, and how does it differ from Supervision?
✅How are short durations defined when an anesthesiologist is absent?
✅How do insurance companies determine the type of anesthesia service provided?
✅What are the billing implications for different case volumes?
About the Expert:
Karen Schnell is the Director of Operations at HSC Medical Billing & Consulting, LLC. She has over 30 years of experience working in healthcare coding and billing. Her experience includes performing medical chart audits, paper and electronic claims submission, managed care contracting, oversight of accounts receivable follow-up, check-in and check-out functions, manual and electronic payment posting, patient accounts follow-up, coding, and entry of various specialties. Prior to working with HSC Medical Billing & Consulting, LLC, she was the Director of Business Services at Welborn Clinic.
Karen became certified in the NextGen Practice Management System in 2004 where she played an integral part in the establishment of the NextGen Practice Management and Electronic Medical Records System for Welborn Clinic. She is a past member of the Welborn Clinic Compliance Committee, Managed Care Committee, HIPAA Committee, and Information Management Committee.
Karen obtained her certification in coding in 1999 through the American Academy of Professional Coders (AAPC) where she remains certified and a member still today. She is a member of the Indiana Part B Provider Outreach and Education Advisory Group (POE AG) with Wisconsin Physicians Service Medicare.
We are excited to announce that we have once again been named a Top 200 Firm by Inside Public Accounting. This achievement reflects the hard work and dedication of our team. We are so grateful to work with such amazing people!
The Employee Retention Credit (ERC) was introduced as a relief measure to help businesses retain employees during the COVID-19 pandemic. However, the program faced numerous challenges, including a high volume of claims and widespread improper filings. These issues prompted the IRS to implement a processing moratorium in September 2023.
Since that time, the IRS has engaged in a comprehensive review to determine how to handle the ERC claims made prior to the moratorium. Their latest news release outlines their approach to handling the backlog of claims.
During the review, the IRS categorized the claims into three risk levels: high-risk, unacceptable level of risk, and low-risk, each requiring a different approach.
The analysis revealed that 10% to 20% of the claims are classified as high-risk, showing clear signs of error. These high-risk claims will be denied in the upcoming weeks.
The IRS has also identified a significant portion of claims, estimated between 60% and 70%, showing an unacceptable risk level. These claims will undergo additional scrutiny to improve the agency’s compliance review. As a result, the majority of claims will be subject to this extended review process, which may lead to delays in processing and notifications.
The IRS recognizes that many small businesses are still waiting on legitimate ERC claims. Approximately 10-20% of these claims are considered low-risk, showing no signs of ineligibility.
The IRS will begin processing these low-risk claims, with the first payments expected to be disbursed later this summer. Priority will be given to the oldest claims, and the IRS will adjust any claims with calculation errors before payment.
The IRS has emphasized that no claims submitted during the moratorium period will be processed at this time.
The IRS continues to promote the special ERC Withdrawal Program, especially in light of the large number of questionable claims revealed by the recent review. If you submitted an ERC claim in the past but believe you were ineligible for the credit, you can withdraw your claim if it has not been processed yet or if you haven’t cashed or deposited any ERC checks received. The IRS will treat the claim as though it was never filed, with no interest or penalties applied.
The IRS cautions taxpayers who filed ERC claims that the process will take time. If you believe you have a legitimate claim, you do not need to take any action at this point and should wait for further notification from the IRS. The agency also advises against calling IRS toll-free lines, as additional information on these claims is generally not available while processing continues.
With that said, the ERC Withdrawal Program remains a viable option for those who suspect they may have submitted an ineligible claim. The IRS continues to urge taxpayers with pending claims to review the ERC guideline checklist and consult a trusted tax professional to review eligibility requirements.
If you have questions or concerns about our ERC cliam, contact our professionals.
When contemplating any type of business transaction, especially those in the unique landscape of healthcare, there are tax considerations to keep in mind. While there are several considerations, these six are key to conducting a successful transaction.
Tax Structure: Buyers and sellers have different preferences in a healthcare deal. Generally, the buyer prefers asset transactions to help produce a tax shield, while sellers prefer selling equity to limit future tax liability, increase administrative ease, and secure capital gains tax treatment. Not only should taxpayers consider the type of transaction, but the structure to adhere to in favor of state and federal regulations as many state laws require these entities to be owned by licensed taxpayers.
Related Party Transactions: Within the healthcare industry, it is often seen that organizations engage with related parties. A challenges that come with this is ensuring that transactions are conducted at arm’s length to be compliant with tax regulations, which is crucial for healthcare taxpayers to review.
Accounting Methods: Accounting methods influence the valuation and tax liabilities of the healthcare entity. For example, entities that follow the cash method of accounting still need to consider uncollected receivables or outstanding payables in the overall transaction. Valuations can be affected by differences in revenue income recognition under the different methods of accounting.
Sales Tax: With numerous variations in sales tax regulations and rates, this can make healthcare deals more complicated. Sales tax rules can vary by the nature of the service, medical equipment, or supplies in question. Additionally, review of nexus rules and sales tax reporting is also important to address.
Unclaimed Property: Issues may arise around transactions such as uncashed payroll checks, uncashed accounts payable/vendor checks, and account receivable credit balances. Account reconciliation issues can result from patient refunds, insurance payments and reimbursements, medical equipment deposits, and patient credit balances. The burden to prove whether funds are due or not is on the owner of these funds and can result in penalties and financial consequences.
Payroll Tax: Considering the compensation structures that are found within healthcare organizations is important. All employees or independent contractors should be properly classified for accurate tax withholdings and treated properly under federal and state payroll regulations. Buyers should consider examining the payroll tax structure and eliminate any exposures to error.
Need more insights on what to consider when entering a healthcare-related transaction? We would be happy to discuss these tax considerations and how it could impact your tax situation. Give us a call!
Our Healthcare Team:
Michele Graham, Vice President, Team Leader, Tax Department Co-Leader
Brenda Wallace, CEO of HSC Medical Billing
Karen Schnell, COO of HSC Medical Billing
Kim Kinnaman, Advisory Services Department Vice President
Sarah Wittenbraker, Outsourcing Client Accounting Senior Consultant
Mary Payne, Client Accounting Consultant
Vineet Goyal, Tax Department Manager
Justine Keller, Tax Department Supervisor
February 2024 – Harding, Shymanski & Company, a leading accounting firm, announced today that they have won the Best of Accounting Client Satisfaction Award for providing superior service to their clients. ClearlyRated’s Best of Accounting® Award winners have proven to be industry leaders in service quality based entirely on ratings provided by their clients. On average, clients of 2024 Best of Accounting winners are 50% more likely to be satisfied than those who work with non-winning firms.
Harding, Shymanski & Company received satisfaction scores of 9 or 10 out of 10 from 77% of their clients, significantly higher than the industry’s average of 56% in 2023.
“I’m so excited to introduce the 2024 Best of Accounting winners alongside their verified ratings and reviews on ClearlyRated.com,” said ClearlyRated’s CEO, Eric Gregg. “Faced with another challenging year in 2023, these firms proved their commitment to providing outstanding experiences and superior service. They’re raising the bar for excellence and I couldn’t be more proud to celebrate their success – cheers to you all!”
The Employee Retention Credit Voluntary Disclosure Program is an IRS initiative for businesses that mistakenly claimed the Employee Retention Credit. It helps avoid severe penalties and potential criminal charges due to unintentional misfiling or erroneous claims.
The program requires you to:
• Voluntarily pay back the ERC, minus 20%,
• Cooperate with any requests from the IRS for more information, and
• Sign a closing agreement.
Advantages of the ERC Voluntary Disclosure Program
There are several benefits to using the ERC-VDP if you received the ERC but weren’t entitled to it and now want to pay the money back. If you apply to the ERC-VDP:
• You need to repay only 80% of the ERC you received as a credit on your return or as a refund.
• You don’t need to repay any interest you received on your ERC refund.
• You don’t have to amend income tax returns to reduce wage expense.
• The 20% reduction is not taxable as income.
• The IRS will not charge penalties or interest on the claimed ERC amount if you pay it in full (claimed ERC minus 20%) by the time you return your signed closing agreement to IRS.
• The IRS won’t examine ERC on your employment tax return for tax period(s) resolved within the terms of ERC-VDP.
Who can apply to the ERC Voluntary Disclosure Program?
Businesses, tax-exempt organizations, and government entities are eligible to apply for the ERC-VDP for each tax period that meets all of the below-listed requirements.
• Your ERC claimed on an employment tax return has been processed and paid as a refund, which you have cashed or deposited, or paid in the form of a credit applied to the tax period or another tax period.
• You now think that you were entitled to $0 ERC.
• You’re not under employment tax examination (audit) by the IRS.
• You’re not under criminal investigation by the IRS.
• The IRS has not reversed or notified you of intent to reverse your ERC to $0. For example, you received a letter or notice from the IRS disallowing your ERC.
If you used a third-party payer to file your employment tax returns or claim your ERC, you can’t apply to the ERC-VDP yourself. You must contact the third-party payer to apply.
Please note that if you willfully claimed an ERC that is fraudulent, or if you assisted or conspired in such conduct, applying to the ERC-VDP will not exempt you from potential criminal investigation and prosecution.
If you’re not eligible to participate in ERC-VDP because your ERC hasn’t been paid or if you have not yet deposited the ERC check, you may be able to use the ERC claim withdrawal process instead.
For more information on the withdrawal process go to: https://www.irs.gov/newsroom/withdraw-an-employee-retention-credit-erc-claim
For more information on the ERC-VDP go to: https://www.irs.gov/coronavirus/employee-retention-credit-voluntary-disclosure-program
Critical Deadline: March 22, 2024
Apply by this date to repay only 80% of the previously received ERC, significantly easing your business’s financial burden. Miss this chance, and you may face larger repayments and penalties.
If you have any questions or concerns, please do not hesitate to contact your HSC service leader or call our office at 800.880.7800.
Indiana Medicaid Rate Equalization
Good news for Indiana Medicaid providers. Due to a 2020 CMS final rule, Indiana Medicaid is required to reimburse with consistent rates across all programs. Instead of reducing the HIP rates to Medicaid rates, they have agreed to raise the Medicaid rates for professional services to 100% of the prior year’s Medicare rates. Thus, all Indiana Medicaid and Indiana HIP plans will pay at the 2023 Medicare rates starting in January 2024.
American Medical Association Announcement
American Medical Association announced 2024 Medicare fee schedule. The final rule includes a 3.37 percent reduction in the 2024 Medicare conversion factor, lowering it from $33.8872 to $32.7442. Additionally, the anesthesia conversion factor is finalized to be reduced from $21.1249 to $20.4349. Please see link for additional information.