Taxes

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.


Section 8: Provide Appropriate Funding for Physician Services - 02/05/2018

For decades, physicians have given away their services for free to patients who could not afford to pay. However, today’s health care market makes this very difficult. Medicare and Medicaid, which now cover 36 percent of all health care spending in the United States, often pay physicians less than it costs them to provide their services. Commercial insurance companies’ payment rates, computed largely as a percentage of Medicare, have followed the government-run programs into the basement. Simultaneous increases in paperwork, compliance, reporting, and technology have driven annual practice expenses to more than $500,000 per physician. The squeeze leaves many physicians struggling to keep their practices open, let alone provide charity care. State and federal leaders must realize that cutting physicians’ payments is not an effective tool for controlling health care costs, and often exacerbates the cost of care by limiting access to efficient outpatient care. Without physicians, no healt...


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.


Capitol Success - 07/06/2017

This legislative session, medicine resolved to ensure physicians can give their patients the best care possible. The hard work paid off in significant victories that largely build on the Texas Medical Association's 2013 legislative successes.


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.


Local Option Exemption from Ad Valorem Taxation for Physician Charity Care - 04/03/2017

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.


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.