Taxes

Taxing Medical Billing Services Harms Health Care - 01/05/2021

Texas has not considered the practice and provision of medical care and health care services to be taxable.  According to the Texas Occupations Code §151.002, billing for treatment performed is part of the practice of medicine.

Buying Time: Comptroller Delays Medical Billing Tax Until October 2021 - 06/01/2020

Comptroller delays medical billing tax until October 2021, giving TMA a chance to work out a legislative fix.

Comptroller Postpones Taxing Medical Billing Services Until 2021 - 04/01/2020

State Comptroller Glenn Hegar will postpone until late 2021 the date that medical practices will be required to pay taxes on medical billing services provided by an outside company.

TMA to Lawmakers: Stop Proposed Medicare Changes - 12/06/2019

Federal lawmakers must hold hearings immediately to stop proposed changes to Medicare that would cause lasting and serious damage to the program and to health care in the United States, Texas Medical Association President Douglas Curran, MD, told two key Texas congressmen today.

Will Tax Incentives Spur Medicaid Care? - 04/09/2019

Physicians who provide charity care are providing a service that is valuable directly to the patient and indirectly to Texas taxpayers. In outpatient settings, for example, providing good ambulatory care can prevent bad outcomes for the patient that could become costly inpatient care at taxpayer expense.

Video: Physicians Inject Billions Into Texas Economy - 06/19/2018

Video: Doctors in the Lone Star State support more than 670,000 jobs — 13.1 jobs for each physician on average — and generated almost $118 billion in economic output, according to a new report.

Penalties, Interest on Overdue Franchise Taxes to Be Waived - 05/21/2018

The Texas Tax Amnesty Program is a chance to “wipe the slate clean” by allowing you to file overdue sales and franchise tax reports, or to amend reports, without paying penalties or interest.

Local Option Exemption from Ad Valorem Taxation for Physician Charity Care - 04/24/2018

Our research indicates that the value of charity care physicians provide is declining, primarily due to increasing costs of running a practice and reductions in payments for services they provide to patients covered by commercial insurance, Medicare, and Medicaid. As profit margins shrink, so does the physician’s ability to give away free care. Few real options are available that address this problem head-on. There is no federal tax deduction for the value of donated personal services. Texas’ franchise tax deduction for charity care, though potentially helpful to large or incorporated groups provides little or no benefit to physicians in solo practice, simple partnerships, or other small practices.

Franchise Tax Issues for Physicians - 02/17/2018

Physicians and other businesses have until May 15 each year to file their state franchise tax returns or seek a filing extension without having to pay a 5-percent penalty.

Twelve Ways Tax Law Changes Will Affect Your Practice - 01/22/2018

In December, Congress approved and President Donald Trump signed the first significant update to the United States’ tax code in more than 30 years.

Physicians to Congress: Don’t Let Sequestration Scrooge Medicare - 12/11/2017

Texas physicians are urging Congress to prevent the federal Tax Cuts and Jobs Act currently being reconciled in the U.S. House and Senate from slashing Medicare.

Tax Fraud - 07/06/2017

A nationwide identity theft scheme is targeting physicians and leaving the Internal Revenue Service liable for hundreds of thousands of dollars in fraudulent tax refunds. As of June, more than 100 Texas Medical Association members notified the association someone had stolen their Social Security numbers and attempted to claim their tax refunds. The association has learned the crime's victims also include physician assistants, advanced practice registered nurses, dentists, podiatrists, and pharmacists. Texas is one of 49 states and the District of Columbia affected by this con.

Texas Franchise Tax Returns Due May 15 - 04/18/2017

Texas physician practices that are organized as LLPs, LLCs, PAs, or in any other corporate form are subject to the Texas franchise tax. Tax returns (or extension requests) are due May 15.

Tax Resource Center - 06/23/2016

The TMA Resource Center for Tax Information

Franchise Tax Bill Update - 06/23/2016

Update about House Bill 3, the state's new business tax.

Comptroller Offers Franchise Tax Amnesty - 06/23/2016

Haven't paid your 2012 state franchise tax yet? You have until Aug. 17 to do so and avoid penalty and interest under the State Comptroller's limited amnesty program.

Hiring Veterans Can Give Physician Practices Tax Advantages - 06/23/2016

If you’ve recently hired — or will hire this year — a veteran who has been unemployed for at least four weeks during the year prior to the hire date, you may qualify for a tax credit of up to $9,600.

Tax Refund Fraud Scheme Affects Texas Physicians - 05/20/2016

Physicians are the latest victims in a tax refund fraud scheme making waves across the nation. The American Medical Association reports it's working with federal officials in the investigation, headed by the Internal Revenue Service and the Secret Service. While the exact source of the identity theft hasn't been detected, several theories exist.

Talking Points on Taxing Physician Practices - 05/20/2016

Talking Points on Taxing Physician Practices

Support Vaccine Tax Deduction - 05/20/2016

This tax falls more heavily on physicians who provide vaccines for their patients because their businesses are a combination of “physician services” and “vaccination sales.”

Secret Service Expects to Make Arrests in Tax Refund Fraud Case - 05/20/2016

Last month, the Texas Medical Association first reported Texas physicians are victims of a tax refund/identity theft fraud scheme making waves across the nation. The association has since learned the crime's victims also include physician assistants, advanced practice registered nurses, dentists, podiatrists, and pharmacists. Texas is one of 49 states and the District of Columbia affected by this con.

Sales Tax Exemption Fix Needed - 05/20/2016

Although the Legislature intended current law to provide an exemption from sales taxes for all “intravenous systems, supplies, and replacement parts used in the treatment of humans,” recent interpretations by Comptroller staff have confused common medical terminology with misapplied accounting interpretations of medical terms. Health care providers understand intravenous (IV) systems to include various combinations of needles, tubing, ports, and other components, most of which are low-cost single-use items that can be used for many purposes in both inpatient and outpatient settings.

HB 1310 Talking Points - 05/20/2016

Under the state margin tax, the tax base begins on gross revenue. From that, the taxpayer may choose to deduct either compensation or cost of goods sold. Many physicians choose to exempt compensation, leaving them to pay 1-percent tax on cost of goods sold. This includes vaccines.

File Your Franchise Tax Reports by May 15 - 05/20/2016

Annual franchise tax reports are due May 15. Beat the rush to file your franchise tax report or request an extension by using WebFile to electronically file reports.

Comptroller Revises Franchise Tax Rules - 05/20/2016

Texas physicians' potential liability under the state's new franchise tax got a bit smaller in March thanks to revised rules developed at the urging of TMA.