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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (1012036)	4/18/2017 8:39:35 PM
From: J_F_Shepard	Respond to of 1573352

. When they reimburse me nothing, I'll just take a $2 million write off, ok?See how silly you are? Only if you think the IRS is silly.......stand by, I'll be posting the rules soon..... I'll encourage you to read them, it will be something you don't do now...

To: Bill who wrote (1012036)	4/19/2017 8:37:26 PM
From: J_F_Shepard	Read Replies (1) \| Respond to of 1573352

So show me where that contractual excess appears on his taxes.......they've got to be accounted for somewhere..

To: Bill who wrote (1012036)	4/19/2017 8:46:12 PM
From: J_F_Shepard	Read Replies (1) \| Respond to of 1573352

I have an appt. to see you Dr. Bill......how many aspirin should I take???? And on what line of my 1040 should I put my gross income..... thetaxadviser.com IRS Issues IDD on Contractual Allowance Issues in the Health Care Industry Editor: David J. Kautter, CPA Ernst & Young LLP The Service has issued an industry director directive (IDD) (LMSB-04-0807-056) on contractual allowance issues in the health care industry. The IDD provides direction to the field on the efficient use of examination resources relating to the audit of contractual allowances. Specifically, the IDD provides a uniform format and approach for examiners to evaluate potential compliance risk related to contractual allowance issues, outlines the established issue management and oversight process, and introduces an initial set of audit guidelines. BackgroundHealth care providers primarily derive revenue from providing medical goods and services to patients. The providers generally issue multiple bills for the same services to the patient and third-party payers. Third-party payers include private insurance companies and government payers, such as Medicare and Medicaid. Providers have standard charges for each specific good sold or service rendered. The standard charge amount is initially recorded as an account receivable on the financial books when the service is rendered or the good is sold. However, providers typically have contractual agreements with most third-party payers regarding the amount that the payer will reimburse for specific goods and services. The discount amount usually differs in contracts between a provider and different payers, and it often differs between different plans offered by the same payer. A contractual allowance is not a bad debt because the provider was never entitled to collect the difference under the terms of the relevant contract. A provider’s book contractual allowance represents the difference between the amount recorded on its books as a receivable at the time of the initial billing and the estimated net realizable value (NRV) of gross receipts reported for book purposes under generally accepted accounting principles (GAAP). The NRV is not an acceptable method of determining income for tax purposes. On an income tax return, properly determined contractual allowances would offset gross receipts. The return may report either a net amount of receipts reduced for contractual allowances or total billed amounts with an offsetting reduction for contractual allowances. The reduction will often appear in returns and allowances. When the provider issues a bill, it has, at a minimum, the following information: The identity of the patient and any known third party that may ultimately bear responsibility for some or all of the payment due; The exact nature of the services and medical goods provided; All gross billing information; and All terms of any contract(s) that may or will provide a legal basis for claiming a contractual allowance for the billed amount as accrued income. The contract terms would be available at all times subsequent to the date of the applicable contract. Most providers and payers have access to payment calculators that compute expected reimbursements under specific contract terms. Planning and Examination GuidanceThe IDD indicates that contractual allowances will appear on the income tax returns of health care providers who: Bill all goods and services at a standard charge; Enter into contractual arrangements with payers (primarily third-party payers) to accept less than their standard charge in full payment of a bill; Record income at the standard charge; and Use contractual allowances to reduce recorded income. The IDD advises examiners that contractual allowances may be improper if any of the following indicators are present: Book income is calculated using GAAP/NRV and there is no Schedule M-3 adjustment; Contractual allowances are determined by reference to prior experience, total collection experience, or commingled contractual allowance and bad debt amounts; Contingencies, reserves, or subjective judgments are included in the contractual allowance on the income tax return; or Contractual allowances are calculated with reference to any patient account in which there is no contract in force at the time services are rendered or the contract in force provides for full payment of the standard charge.