We help companies all over Georgia identify and obtain tax credits. Tax credits maximized. Risk minimized.

Filed under: Retraining Tax Credit
December 29, 2011

You have probably heard your clients say they don’t want any more projects because they are too busy. We see many businesses where the equity owners want the tax credits, but their administrative team has other priorities (and there is nothing in it for them personally). Here are a few points that could help when you talk with your clients:

  • The $$ benefit is available NOW - The client pays Georgia income taxes and has installed new software. But with the one year amended tax return limitation, this tax credit may be gone forever (you snooze, you lose).
  • All the information you need is fresh - vendor invoices, HR/payroll data, and employee training information (so it’s easy to gather).
  • Benefit to everyone - The tax credit $$ can be re-invested into the business to help it be more successful and grow (maybe pay raises for employees?).

We recently helped a 16-employee physician practice get a credit of over $17,000 for their new EMR software. The practice manger said she spent about 1 hour over the entire duration of the project. Her value added was over $17,000How many projects can provide hard ROI of $17,000/hour net-after-tax cost savings to a business?

Your clients need your help to see the bigger picture of tax credit benefits and to understand that priorities may need to be temporarily changed.

JimSig
Filed under: Policy
December 29, 2011

GCI is in its Quiet Phase – in other words, either they are writing their report due 12/31 or they decided to take the holidays off!

No, hopefully they are putting the finishing touches on the report this week and we should all see something in early January.  After that, it goes to our policy makers to be converted into legislation.  That’s what they call making sausage!  

Here’s what we think they want to do -

  1. Make targeted changes to tax policy, but no wholesale tax reformin this election year
  2. Maintain statutory incentive tax credits, but make some of them more effective for economic development and job creation
  3. Add State discretionary incentives to help close economic development deals for Georgia

Earlier this month, I attended the State Legislature’s “Special Joint Committee on Georgia Revenue Structure” hearing at the Capitol.  Called at the last minute, only about half of the members attended, so nothing got done, at least on the surface!

We will keep you updated throughout the 2012 Session!

DaleSig

Filed under: Other Incentives
December 29, 2011

For physician practices that have Medicaid patients, we talked with Don Betts, Georgia Tech, who is a service delivery partner with GA-HITREC (click here). Don specializes in assisting physician practices in achieving Meaningful Use, and here is an overview of what he had to say regarding Medicaid’s Meaningful Use:

Healthcare providers can receive a maximum of $63,750 from Medicaid over a six year period. Eligible Professional (EP) means more provider types than the Medicare incentive – in addition to physicians, it includesnurse practitionersmidwivesdentists and physician assistants at a Federally Qualified Health Center (FQHC). The incentive is based on using a certified Electronic Health Record (EHR) in a defined Meaningful Use way. The Meaningful Use requirements will be phased in over 3 stages and several years, with Stage 1 having started in 2011. Medicaid is making it easier to receive the incentive for 2011 and 2012. EPs don’t have to meet Stage 1 requirements but merely show that they have adopted, implemented, or upgraded to a certified EHR. Here are some takeaways for Medicaid Stage 1 (2011 and 2012):

  • How much $$: Each EP that has a minimum of 30% Medicaid patient encounters (20% for Pediatricians) can receive $21,250 in year one. For example, if there are 5 EPs in the practice, then there may be up to $106,250 (5 x $21,250) of incentives for year 1. Each EP’s patient volume needs to be reviewed to determine if there is potential. They can also qualify as a group.
  • Who gets paid: Similar to Medicare, payments are made to the individual EP (his or her SSN) or to the physician practice (the practice’s TIN number). The EP may reassign the incentive $ to the physician practice.
  • How to get paid: To get paid for year 1, each EP has to register with CMS, then “attest” with DCH by showing proof of the EHR upgrade and completing a volume calculator.
  • State of Georgia: The Georgia Department of Community Health (DCH) administers the meaningful use program (click here ).
  • 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!

JimSig
Filed under: Investment Tax Credit, Job Tax Credit
December 29, 2011

The Georgia Department of Community Affairs (DCA) has just released the 2012 Tier Rankings (click here) used for Job and Investment Credits.

Filed under: Job Tax Credit, Retraining Tax Credit
November 29, 2011

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:

  1. 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.
  2. Accumulated depreciation schedule. Flag any large computer or software items and review expenses to identify large consulting fees or operating lease increases.
  3. 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!

JimSig
Filed under: Policy
November 29, 2011

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 -

  1. Conservation tax credits – will be re-sellable (HB 346)
  2. Energy tax credit – increase annual cap from $2M to $5M & extended sunset to 2014 (HB 346 )
  3. 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.

 

DaleSig

Filed under: Other Incentives
November 29, 2011

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 (clickhere). 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!

JimSig
Filed under: Management
October 27, 2011

Georgia’s DOR is in the process of converting to a new individual income tax return system. In case you hadn’t noticed, this has delayed return processing and refunds. They told us that since many of their employees are having to help get the systems ready, everything else in the department has slowed down. As we all know with any new system, it takes time and patience.

One thing you can do to help with processing your clients’ tax returns (especially with tax credits) is to attach all of the equity owners’ K-1s to the corporate return and the individual equity owner’s K-1 to their individual return. This will help DOR follow the tax credit $$ from the corporate return to the individual returns. Looks like this is a case where more data is good (!!).

DOR’s goal is FASTER. FRIENDLIER. EASIER. If we all can help them achieve this goal, your clients will benefit.

Filed under: Policy
October 27, 2011

This is the quiet time of the process, on the surface, but the real work is happening right now within the Georgia Chamber’s Government Affairs Council. They are responsible for developing the core recommendations of the Initiative’s strategy report.

You may want to attend the 2011 Georgia Chamber Tax Forum on November 3. This session will include the Chamber’s tax legislative initiatives and a preview of the 2012 legislative session. Hope to see you there! (click here)

Filed under: Retraining Tax Credit
October 27, 2011

Beginning on January 1, 2012 the new HIPAA 5010 electronic transaction standards will affect almost every aspect of a physician practice’s reimbursement and revenue stream (click here). This may require software upgrades, workflow changes and employee training. Employee training on the 5010 regulations does not count for the Retraining Tax Credit since it involves regulations. However, employee training on the new/upgraded software and workflow changes may count for the Retraining Tax Credit. Talk with your clients about their preparation for HIPAA 5010 and let them know that a tax credit could help out.

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