Tax News & Views: Health Care Edition

Treatment of Leave-Based Donations to Ukraine

The Internal Revenue Service (IRS) issued Notice 2022-28 on May 19, 2022 to provide guidance to employees and employers using employer leave-based donation programs on the federal income and employment tax treatment of cash payments made by employers under such programs to aid victims of the further invasion of Ukraine by the Russian Federation beginning on February 24, 2022 (further Russian invasion of Ukraine). Under employer leave-based donation programs, employees can elect to forego vacation, sick, or personal leave in exchange for their employers making cash donations to charitable organizations described in section 170(c) of the Code (section 170(c) organizations). The notice states that employer leave-based donation payments made by an employer before January 1, 2023 to section 170(c) organizations to provide aid to victims of the further Russian invasion of Ukraine will not be treated as gross income or wages of the employees.

2023 Inflation-Adjusted Amounts for Health Savings Accounts

Revenue Procedure 2022-24 was released on May 16, 2022 and provides the 2023 inflation adjusted amounts for Health Savings Accounts (HSAs) as determined under Internal Revenue Section 223 and the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) provided under § 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.

Treasury and Internal Revenue Service request recommendations for Priority Guidance Plan

The Department of the Treasury (Treasury Department) and Internal Revenue Service (IRS) issued Notice 2022-21, inviting the public to submit recommendations for items to be included on the 2022-2023 Priority Guidance Plan, which will cover priorities during the period from July 1, 2022 through June 30, 2023. The Treasury Department and IRS use the Priority Guidance Plan each year to identify and prioritize the tax issues that should be addressed through various published guidance.

Did you know?

IRS Interest rates increase beginning July 2022
Revenue Ruling 2022-11 reports the interest rates on overpayments and underpayments of tax per Internal Revenue Code Section 6621 effective beginning July 1, 2022. The rates will be 5% for overpayments [4% in the case of a corporation], 2.5% for the portion of a corporate overpayment exceeding $10,000, 5% for underpayments, 7% for large corporate underpayments.

Additional Resources

Deloitte Center for Health Solutions
The source for health care insights: The Deloitte Center for Health Solutions (DCHS) is the research division of Deloitte’s Life Sciences and Health Care practice. The goal of DCHS is to inform stakeholders across the health care system about emerging trends, challenges, and opportunities.

Health Forward blog
Connect to the forces of change across life sciences and health care today. Explore our latest leadership insights to stay ahead of industry trends and key issues on health care, medtech, and biopharma.

Related highlights

Private wealth tax planning update
Participants will gain important insights on evolving tax policies and issues to consider while engaging in tax planning.

Financial accounting and reporting for income taxes: Midyear update
What new income tax accounting developments have emerged since our last update? What other issues should you consider as the year unfolds? Participants will gain valuable insights into accounting for income taxes and the latest developments affecting financial reporting for taxes.