July 13, 2020: MGMA urges Congress to clarify that PRF payments are nontaxable

July 13, 2020 
 

Re: Taxation of Provider Relief Fund Payments

Dear Majority Leader McConnell, Speaker Pelosi, Minority Leader Schumer, Minority Leader McCarthy, Chairman Neal, Chairman Grassley, Ranking Member Brady, and Ranking Member Wyden:

The Medical Group Management Association (MGMA) deeply appreciates actions taken by Congress to assist physicians, group practices, and healthcare providers across the country in meeting the demands of the COVID-19 pandemic. In particular, financial assistance programs and efforts codified in coronavirus relief legislation offer a lifeline to group practices confronting financial challenges associated with reduced revenue and increased expenses due to the pandemic, thereby mitigating economic stress and enabling providers to appropriately focus on patient care and safety measures. To improve upon the implementation of crucial financial support, we respectfully request that Congress take action to address the tax treatment of Provider Relief Funds offered through the Public Health and Social Services Emergency Fund and clarify that any retained payments are nontaxable for all recipient providers.
 

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