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Lawmaker Looking to IRS to Collect Unpaid Medical Provider Taxes
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In recent report amednews.com reports here that "A key lawmaker continues to press the Internal Revenue Service about how it intends to collect unpaid taxes from physicians and other medical professionals who keep collecting Medicare and Medicaid dollars.  Sen. Charles Grassley (R, Iowa) said a recent report concluded that federal contractors -- a term that includes physicians collecting public health pay -- collectively owe more than $3 billion in unpaid income taxes from 2008. The Government Accountability Office also has released reports in recent years indicating that such contractors accrue more than $1 billion in unpaid taxes each year, including payroll taxes used to fund Medicare and Medicaid, said Grassley, the ranking Republican member on the Senate Finance Committee."

"In a Dec. 14, 2009, letter to IRS Commissioner Douglas H. Shulman, Grassley highlights details from several GAO reports investigating the tax debts of health care entities. In March 2007, for example, the GAO testified that more than 21,000 physicians, other health care professionals and suppliers paid under Medicare Part B during the first nine months of 2005 had tax debts totaling more than $1 billion. In June 2008, the GAO reported that Medicare participants who were paid during calendar year 2006 owed more than $2 billion in federal taxes, the senator noted in his letter. In that report, the GAO cited 90 specific cases of physicians and others who were tax delinquents. The agency declined to identify them in the report, instead referring the information to the IRS."

"Starting in 2012, the IRS will begin withholding 3% of payments to any contractor doing work for federal, state or local governments, including those filing Medicare claims. After the money is used to satisfy any outstanding tax debts, any overage would be returned during the next year's tax season. But in the meantime, the government would hold onto that 3%, interest-free."

 
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U.S. government overpaid private insurance companies administering Medicare Advantage plans by as much as $3.1 billion in 2010, according to a new report from the Government Accountability Office (GAO).

About a quarter of all Medicare beneficiaries are enrolled in Medicare Advantage plans, and the Centers for Medicare and Medicaid Services (CMS) paid about $114 billion to the plans in 2010.


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