For-profit providers have to pay taxes on COVID-19 relief grants
From Modern Healthcare on July 13, 2020
The IRS clarified that for-profit healthcare providers will have to pay taxes on the grants they received from the COVID-19 Provider Relief Fund.
The two laws that set aside $175 billion in grants to help providers cover lost revenue and coronavirus-related expenses didn’t explicitly state that the funds would be taxable. However, the IRS issued guidance stating that the grants are taxable income days before a tax filing deadline on July 15. The change means that grants to for-profit healthcare providers including hospitals and independent physician practices will be subject to the 21% corporate tax rate.
Coronavirus Aid Relief and Economic Security Act (CARES Act), COVID-19 coronavirus, Families First Coronavirus Response Act (FFCRA), Internal Revenue Service (IRS)