2008 and 2010 Are Almost Gone!
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2008 and 2010 are almost gone for amending tax returns for the Retraining and Job tax credits. Year-end planning for your clients (and prospective clients) is a great time to discuss these prior year opportunities. You will want to include a review of the following for 2008 and 2010: - Georgia income tax filing dates (month & day) for corporations and individuals owning pass-throughs. The amended return MUST be filed no later than this date in 2012.
- Accumulated depreciation schedule. Flag any large computer or software items and review expenses to identify large consulting fees or operating lease increases.
- Payroll. Identify significant cost increases that may indicate net new jobs.
This is a quick way to strengthen your business advisory role with your clients. If you find tax credit potential $$, your client will thank you for the nice $$ check they receive from DOR! |
DOR One-Day Session
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We recently attended the annual IPT Institute for Professionals in Taxation (click here) One-Day Georgia Tax Seminar. It was a great opportunity to meet the new DOR commissioner Doug MacGinnitie and his team. Here are some highlights:
Breath of fresh air - The new commissioner emphasized that his role is to help taxpayers comply with the laws of Georgia. Any changes in public policies or laws should be addressed by the Georgia Legislature, not by his department!
Tax Credits -
- Conservation tax credits - will be re-sellable (HB 346)
- Energy tax credit - increase annual cap from $2M to $5M & extended sunset to 2014 (HB 346 )
- Education tax credit - the cap will be adjusted for inflation and reduced the approval processing requirements (HB 325)
Wrap up - the new commissioner's goals are to improve customer service, increase efficiency by leveraging technology and minimize the "tax gap" (i.e., what is owed vs. what is paid). For a DOR summary of the 2011 legislation, click here.
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Healthcare -- Meaningful Use $$ for Medicare
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Many CPA firms have asked us about the Federal Meaningful Use incentive and the potential $$ for their clients. I spoke with Liz Hansen, VIA Consulting Group, who is a service delivery partner with GA-HITREC (click here). Liz specializes in assisting physician practices in achieving Meaningful Use, and here is an overview of what she had to say: Physicians, or Eligible Professionals (EPs), can receive a maximum of $44,000 for Medicare over a 5 year period. The incentive is based on using a Meaningful Use Certified EHR (EMR) in a defined Meaningful Use way. The incentive is divided into 3 Stages, with Stage 1 starting in 2011 or 2012. Here are some takeaways for Medicare Stage 1: - How much $$: The $$ incentive is 75% of Medicare Part B allowable charges up to a maximum of $24,000 of charges in a year for each EP (75% of $24,000 = $18,000 for Stage 1). For example, if there are 5 EPs in the practice, then there may be up to $90,000 (5 x $18,000) of incentive for Stage 1. Each physician's Medicare allowable charges needs to be reviewed to determine if there is potential.
- Who gets paid: Payments are made to the individual EP (his or her SSN) or to the practice (the practice's EIN number). To make sure everyone is on the same page, you must review employment contracts, operating agreements, ownership changes (physicians join or leave the practice), non-equity physician expectations and other items, so that when the Meaningful Use check $ arrives, you know who gets the money.
- How to get paid: To get paid for Stage 1, each EP has to "attest," that is, use the EHR per the meaningful use requirements for a 90 day time period and report this data on the CMS website. It is a pass/fail grade. If the EP has a passing grade, the check will be mailed. If the EP fails, he or she will have to start the 90 day time period all over again.
- HIPAA: don't forget to review the new privacy and security requirements.
One final note -- many physician practices have already qualified for Stage 1 and have received their checks. This is real money flowing to the practices (for details, click here ). If your client has potential, make sure they can benefit!
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About Us------------------------------------------------------------------------- Alpharesults has assembled a team with the specialized knowledge and approach required to obtain Georgia income tax credits. We are not a public accounting firm. Rather, our services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions. We focus on small to medium-sized businesses and work exclusively in Georgia with a wide variety of in-state and out-of-state accounting firms. For more information on our services, follow this link. |
