Medicare Providers Could Face Up To 100% Late Tax Penalties Under New Provision
Posted on Thursday, March 26, 2015 1:40 PM
Congress recently proposed a bill that would reset Medicare physician pay rates. However, details about the measure emerged that it would also include penalties as high as 100% for providers delinquent with income tax payments. According to the Government Accountability Office (GAO), thousands of Medicare providers are late paying their income taxes every year. Under the provision, the IRS would be allowed to impose late tax penalties as high as double the amount of the back taxes, reducing the offenders’ Medicare reimbursement checks. The current law sets the ceiling at 15%.
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