January 10, 2014

Synōvim Healthcare Solutions

IRS Guidance on Reporting EHR Incentive Payments

The Office of the National Coordinator (ONC) received guidance from the Internal Revenue Service (IRS) on the reporting of EHR Incentive payments that are made to a provider but assigned to his or her employer.

The letter lays out the general rule that assigned income is nevertheless counted as income to the payee. However, CMS regulations at 42 CFR § 495.10 require an employment or other contractual arrangement in order for payments to be reassigned. This requirement, assuming it is correctly followed, creates an exception from the general rule and an incentive payment need only be reported with respect to the assignee, not the payee. Read the letter.

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Synōvim Healthcare Solutions, Inc. is a not-for-profit organization sponsored by the Kansas Foundation for Medical Care (KFMC) and the Kansas Association for the Medically Underserved (KAMU). Synōvim, comprised of Regional Extension Center (REC) staff, is in partnership with these organizations to help assist Kansas providers with their health information technology and quality improvement needs once federal funding has ceased for REC services.

This material was prepared by Kansas Foundation for Medical Care, Inc. as part of its work as the Kansas Regional Extension Center, under grant #90RC0003/01 from the Office of the National Coordinator, Department of Health and Human Services. SYNREC_2014_02

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