Tax Briefs (2010-12)

 

Events Prior to the Date of Enactment

January 1, 2010 (Back to Tax HRN 2010-12)

 

Taxes: Requires Blue Cross Blue Shield organizations to have a medical loss ratio of 85

percent or higher to take advantage of the special deductions afforded to such organizations

under the Internal Revenue Code. Effective for tax years beginning after December 31, 2009.

(Sec. 9016)

 

Taxes: Increases the adoption tax credit incentive and extends it through the end of 2011.

Effective for tax years beginning after December, 31 2009. (Sec. 10909)

 

Taxes: Eliminates the cellulosic biofuel producer (“black liquor”) tax credit. Effective for

fuels sold or used on or after January 1, 2010. (H.R. 4872 Sec.1408)

 

March 23, 2010 (Back to Tax HRN 2010-12)

 

Taxes: Establishes in statute the economic substance doctrine (a judicially developed

doctrine that IRS has used to fight tax shelters), which permits transactions lacking in

economic substance to be disregarded for tax purposes. (H.R. 4872 Sec. 1409)

 

Taxes: Provides an exclusion from gross income for certain Indian tribe health benefits,

including health plan coverage and medical care provided by Indian tribes to their members

and their members’ families (Sec. 9021)

 

Taxes: Establishes additional requirements and penalties for nonprofit hospitals to qualify as

Sec. 501(c)(3) charitable hospital organizations under the Internal Revenue Code. Hospitals

must limit the amount charged for those eligible for assistance. The Treasury Secretary must

review the community benefit activities of each hospital every three years. The Treasury

Secretary, in consultation with the Secretary, must submit an annual report to Congress. (Sec.

9007)

 

July 1, 2010 (Back to Tax HRN 2010-12)

 

Taxes: Start date for new 10 percent excise tax on ultraviolet tanning services. Effective for

services performed on or after July 1, 2010. (Sec. 10907)

 

January 1, 2011  (Back to Tax HRN 2010-12)

 

Taxes: Prohibits taxpayers from using their Flexible Spending Accounts, Health

Reimbursement Accounts, and Health Savings Accounts to purchase over-the-counter

medicines. Effective for tax years beginning after December 31, 2010. (Sec. 9003)

 

Taxes: Levies new tax on brand-name pharmaceutical companies and importers, which will

be based on the market share of each company’s branded prescription drugs sales. The Joint

Committee on Taxation estimates that this tax raises $27 billion over 10 years. (Sec. 1404 of

H.R. 4872)  

 

Taxes: Requires employers to report the value of an employee’s health benefits on the W-2.

Effective for tax years beginning after December 31, 2010. (Sec. 9002)  

 

Taxes: Increases to 20 percent penalties for non-qualified withdrawals from Health Savings

Account and Archer Medical Savings Account. (Sec. 9004)  

 

Taxes: Establishes tax credits for health insurance-related expenses of small businesses.

Effective for tax years beginning after December 31, 2010. (Sec. 1421)  

 

Taxes: Requires businesses that pay any amount greater than $600 during the year to

corporate and non-corporate providers of property to file an information report with each

provider and with the IRS (in a manner similar to the way in which businesses file a W-2

form to report employees’ wages). Effective for payments made after December 31, 2010.

(Sec. 9006)  

 

December 31, 2012 (Back to Tax HRN 2010-12)

 

Taxes: Deadline for the Secretary of Veterans Affairs to report to Congress on the results of a

study on the effect of the new taxes on branded pharmaceutical manufacturers and importers,

medical device manufacturers and importers and health insurance providers on the cost of

care provided to veterans and veterans’ access to devices and prescription drugs. (Sec. 9011)

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