All recipients of Provider Relief Fund (PRF) payments must comply with the reporting requirements as set by the Department of Health and Human Services (HHS). At this time you only need to complete the registration. Once further guidance is issued on the new reporting requirements, we will determine what information will need to be provided. HHS has not indicated when reporting will occur, but we are anticipating it will not begin until Summer.
HHS added new FAQs for the issuance of Form 1099s back in Dec 2020. If you have not already, you should soon receive Form 1099 to report the amount of PRF payments the practice received during calendar year 2020.
- Will I receive a Form 1099? Yes, you will receive a Form 1099 if you received and retained within the calendar year 2020 a total net payment from either or both of the Provider Relief Fund and COVID-19 Claims 6 Reimbursement to Health Care Providers and Facilities for Testing, Treatment and Vaccine Administration for the Uninsured that is in excess of $600.
- When will my Form 1099 be available? Form 1099s will be mailed by January 31st, 2021. If you have previously established an account with UnitedHealth Group and elected to receive electronic copies of documents and notices, you will not receive a mailed copy.
PRF payments are considered taxable income. However, because they are also considered grants, it is currently not known how the issuance of Form 1099s may impact the timing of income recognition and deduction for eligible expenses (which is a condition of keeping the funds). More updates to be provided as guidance as issued by HHS.
For more information, view the Provider Relief Fund Reporting User Guide. Please contact your Somerset advisor at 317.472.2200 or with any questions.