Getting IRS Answers

Even When You Shouldn’t Ask
Staff Writers
Our complex tax system has sparked moves toward a flat tax in 2008 and other efforts at simplification. But until such a change occurs—if it ever does—we are stuck with what we have. This means many doctors and all taxpayers will continue to be confused and uncertain about their tax [...]

“S” Corporation [Case Law] Tax Advantages

Family Owned Business [FOB]
Staff Writers
Some doctors understand the advantages that S corporations have over regularly taxed C corporations—and vice versa. But, an unfamiliar Tax Court decision, more than a decade ago, points up an advantage for S corporations that are sometimes overlooked.
Scenario
Suppose the owners of a family corporation are about to retire. Their children will [...]

Worthless FOB Stocks

Getting the Tax Deduction
Staff Writers
All physicians and other investors should know when their stock becomes worthless.
Example Scenario:
Some time ago, an FOB physician investor [Family Owned Business] founded two FOBs: One was doing fine while the other floundered. Under the IRS Tax Code, the investor can receive a loss deduction on the second FOB if: 1) [...]

About Tax Record Retention

Which Ones to Keep—How Long?
Staff Writers
By law, we are all required to keep records the IRS could use to determine our tax liability accurately. And doctors, more than most, know what it’s like to keep records. So you should retain whatever papers and documents support or clarify your calculations. If the IRS thinks you owe [...]

Dining and IRS Induced Gastroenteritis

Doctor’s Beware Taxation on Rebates
Staff Writers
In the past decade or so, several companies has been marketing a culinary twist on airline frequent flyer programs—a kind of frequent-eater program.
Under the program, doctors who love to hold “business meetings”, and other diners use their regular credit cards to charge meals at participating restaurants, and the program [...]

Selecting Tax-Return Preparers

What Doctors Need to Know about Preparers
Staff Writers
Most doctors and medical professionals are not thinking about tax season right now. But, according to Executive-Post supporter Rachel Pentin-Maki; RN, MHA “now may be the best time to rethink your relationship with your tax-preparer.”
All Tax Preparer’s not equal!
All tax return preparers are not the same. They [...]

Corporate Minutes and IRS Tax Savings

It Pays for Doctors to Keep Records
By Dr. David Edward Marcinko; MBA, CMP™
Publisher-in-Chief
More than a few medical professionals have ownership in small corporations outside of their medical practice, or day-job as physician-healers. More are contemplating same, as the healthcare insurance crisis grows, and the social and economic swagger of physicians decrease.
Small Corporations
But, some [...]

IRS Offers-in-Compromise

Understanding the IRS Tax Reform Act
Staff Writers
In 1998, the IRS received 105,255 offers-in-compromise, but accepted only 25,052 offers—a mere 24%; and the exact number for medical professionals is unknown.
The IRS Reform Act
However, the IRS Reform Act later revamped the provisions for offers-in-compromise and the IRS, reacting to the changes, announced that it would [...]

Alimony versus Child Support

Tax Consequences for Physicians
Staff Writers
Tax considerations are critical when preparing divorce agreements; and an understanding of the applicable sections of the Tax Code is essential for all medical professions in this situation.
In short, alimony is deductible for the payer while child support is not; so it is important for a separation agreement to stipulate [...]

Hospitals Auctioning Patient Debt

Online Sale of Patient ARs
Staff Reporters
In another sign of the contracting economic times, FierceHealthFinance is reporting that some struggling hospitals are using the internet as a new channel to cut their write-offs, and bad debt ratios which lower stock prices, if publicly-held.
Exit the Debt Collectors – Enter the Auctioneers
Rather than simply hiring agencies [...]

Project Manager and Assistants Wanted

Atlantic Logistics; L.T.D.
A European leader in the transportation business is seeking experienced and professional Project Managers and assistants. There is an immediate need for experienced individuals. Strong computer, organizational, communication and presentation skills with a reliable work ethic is required.

Additional Requirements:
- US Citizens;
- Fluent in English (spoken and written);
- A PC user (MS Office, MS [...]

Hospital Stock and Taxes?

Q: I am a hospital employee. What are the ways that I can acquire stock in my public company without current cash activity; i.e.; taxes; any thoughts?
For example, at this time I do know it is important that any loans be subject to full recourse liability.
I also understand that if the loan is secured by the [...]

Physician Business Owners

Medical Accounting News for 2008
Staff Writers 
 
By now, most physician business-owners understand the general rules regarding the filing requirements for Form 1099-MISC. 
IRS Form 1099-MISC in Review 
Nevertheless, in review, Forms 1099-MISC should be issued to independent entities performing services for your medical practice or business entity. 1099s should be sent to individuals with annual earnings exceeding $600.  There [...]

Medical “BottleNeck” Accounting

Variance Analysis Re-Invented
Staff Writers 
 
Any healthcare organization usually has several processes involved in the utilization of its patient services. Unfortunately, bottlenecks may arise which constrain the amount of services any given healthcare entity can deliver. 
Accounting Definition 
An accounting “bottleneck” is a process that has a low output and limits total healthcare entity revenues. If a medical business entity [...]

Activity-Based-Cost Accounting Management

A Non-Traditional Accounting System
Staff Writers 
Sooner or later you will want to ascertain and then demonstrate the cost effectiveness of your medical care. By using the process of Activity Based Cost (ABC) management, you will be able to do so.  But, if you’re using a traditional accounting system, you won’t know a thing about your activity [...]

Reformed Accountants

 
Certified Public Accountants and EAs
Staff Writers 
 
The healthcare industrial complex represents a large and diverse industry, and the livelihood of other synergistic financial professionals and consultants who advise doctors depend on it.  These include financial accounting professionals who themselves wish to avoid the collateral damage and negative ripple effects of the current healthcare reform debacle. 
Introduction 
The nation’s [...]

Dubious Accounting?

Why Medical Practice Financial Statements are Sometimes Suspect?
By Dr. Gary L. Bode; CPA, MSA  
Medical practice financial statements have potential problems, and are often suspect for several reasons:  
First they rely on unverified information from the practitioner. A practice’s internal bookkeeping, even with the highest of intentions, is often sloppier than an accountant might hope.   Professional liability with [...]

Medical Practice Financial Accounting

The Three Methods of Medical Office Accounting
By Dr. Gary L. Bode; CPA, MSA 
 
Did you know that there are three recognized methods of financial accounting used in medical offices today? If not, this brief rundown on all three methods will help: 
1) Cash method  
Here, money is counted only as you deposit it, and “spent” only when write a [...]

Medical Economic Value-Added Accounting

Understanding MEVA?
Staff Writers
 
 
It is not unusual for a medial practice to incur extra-ordinary expenses by investing in technology or equipment. But, did you know that there are two methods of evaluating these capital expenses?  
·   The older Generally Accepted Accounting Principles (GAAP) removes them from the income statement that is used to evaluate enterprise profitability.
 ·  The newer [...]

Pro-Forma Accounting Statements

What are Medical Practice Pro-Forma Financial Statements?
Staff Writers 

Since a start-up medical practice has no historical financial information, simplified Pro Forma’s are estimated statements that are typically projected for 3 years.  They demonstrate the best care, worst case and most likely financial scenarios of a new practice, clinic, healthcare entity, etc. Computerized spreadsheets are ideal for [...]