We have heard you missed our eblasts! We have been keeping up with all the changes, improvements and new details of the COVID 19 legislation. We needed a little break from eblasts but here is our COVID # ?? (we have lost track of how many over the last half year!).

New Details on CARES Act Provider Relief Fund (PRF): Terms have improved and Deadline Extended (again) to August 28, 2020.

Many dentists are asking us: Should I apply?

  • We recommend first calculating whether or not the dollar amount is worthwhile to you.
  • If it isn’t, we recommend you ignore this fund and spend the few hours (that it would take to apply) building your business, spending time with family or taking time to relax.
  • If it is, then we recommend you read the Terms & Conditions and FAQs. Determine if you feel comfortable agreeing to them. Only YOU can decide this! 
  • If you need help with the application process, HHS has also set up a Provider Support Line – 866-569-3522 – to assist with questions.

What is the maximum you can receive?

  • First, we recommend you assume this is taxable income (this is still open).
  • Thus, the maximum is 2% of gross revenue on the last filed tax return.
  • LESS the federal and state taxes you will pay (assume 40% as a safe estimate).
Many dentists are choosing not to apply because the net money received is not large enough, in their opinion, to offset some of the terms and conditions. This determination can only be based on whether or not you are concerned about the terms. 

That being said, some concerns have been addressed by the HHS recently as shared by the ADA. The ADA’s publication is excellent and we have copied some of the information below to make sure you have the latest.

One last consideration – the dollar amount you receive will be published, so if you are concerned about privacy, we recommend you NOT apply. This may be an issue with divorces, child support or other dentists knowing your income.

Many of you have already applied for the PRF and the number one concern we’ve heard has been about accepting the terms and conditions on balance billing, also known as surprise billing. The ADA worked with the HHS to set the record straight, and they’ve now clarified the following:

  • Dental providers who are NOT caring for patients with presumptive or actual cases of COVID 19 are NOT subject to balance billing prohibitions. “Presumptive” is defined as a case where a patient’s medical record documentation supports a diagnosis of COVID 19.
  • HHS thinks few, if any, dentists are performing dental work on active COVID 19 patients. So, there should be very few dental patients covered by this bar.
  • Qualifying for payment from the PRF has to do with past treatment earlier this year when HHS broadly viewed every patient as a possible case of COVID 19. Balance billing prohibitions apply only to treating current active COVID 19 patients with a medical record that supports a diagnosis of COVID 19.

Again, this is straight from the ADA’s alert.

  • For those concerned about reporting requirements, HHS did release a notice stating that detailed instructions regarding future reports will be released by August 17 and will apply to payments exceeding $10,000 in the aggregate from the PRF.
  • The reporting systems will become available to recipients for reporting on October 1, 2020. The reports will allow providers to demonstrate compliance with the terms and conditions, including use of funds for allowable purposes.
  • Recipients of PRF payments do not need to submit a separate quarterly report to HHS or the Pandemic Response Accountability Committee.
  • There are plans by HHS to provide recipients with Question and Answer Sessions via webinar in advance of the submission deadline. 
Tax Projections & Salary Update: Remember, we are working on tax projections (which are much more complicated this year!) and will be sending revised salary and withholding as quickly as we can analyze and process your May or June tax projections. STAY TUNED!

*Please note, if we have not received your monthly bookkeeping, your projections will be delayed*
PPE Tax Credit Gaining Support

As you may have seen in recent ADA news, the ADA continues to support a PPE tax credit for dental practices.

The credit is currently being discussed as a $25K tax credit.

Tax credits are more valuable than tax deductions because tax credits are a dollar-for-dollar reduction of your tax bill whereas tax deductions only reduce your tax bill by the percentage tax bracket you are in for the year.

*Tip - Keep a separate folder to obtain all PPE invoices*
A Bill has been drafted in the Senate that would “repurpose” the $135B of unspent PPP funds. Two competing versions of the bill exist, but some of the elements we may see in the final bill include:

  • Businesses may need to employ fewer than 10 employees.
  • Proof of significant income drop – potential greater than 50% - may be required.

Some industries may be excluded but dentistry should be allowable.

We are still waiting to see what will be passed.
The House Democrats proposed another round of stimulus checks and the President is saying he would like to send checks for an even larger amount than proposed. This is another “Stay Tuned.”
Our Dental Practices are Re-bounding well: CUAK's review of our clients’ financials is showing 85% of our clients’ income has returned to within 20% of their pre-closure income. Many expect to be back to 100% of their production by the end of July or August. 

PPP Forgiveness: PPP forgiveness is not set in stone yet. There is still lobbying to forgive loans under $150,000 (no application would be needed). In our conversations with bankers, they are not ready to accept applications yet. The earliest we are hearing is mid to late August. So, hang in there. We will update you as we hear more.  
Please be sure to visit our Website for past Eblasts, Webinars & Podcasts:
As always, we hope you are staying safe and sane and positive. 
We love and appreciate you!
Every effort is made to provide accurate and complete information in Coleman, Ureda, Alford & Kaucher, PA publications. This information is being provided as a courtesy to our clients and is based on the best of our knowledge at this time. Please understand the COVID-19 situation and related law/bills are ever evolving. The law/bills are being interpreted and adjusted by various agencies on a frequent basis. Thus, we cannot guarantee that this information remains up-to-date.