Tax News & Views: Health Care Edition

Updates to Form 8940, Request for Miscellaneous Determination

An electronic version of Form 8940, Request for Miscellaneous Determination, is available for tax-exempt organizations as of April 3, 2023. Form 8940 must now be submitted electronically via Pay.gov and the Instructions for Form 8940 have been revised to reflect the electronic submission requirement.

In addition to the miscellaneous requests that have previously been made using Form 8940, the following miscellaneous requests are now also made on Form 8940:

• Government entities requesting voluntary termination of exempt status under section 501(c)(3) (previously a letter request).
• Canadian registered charities requesting inclusion in the Tax Exempt Organization Search (TEOS) database of organizations eligible to receive tax- deductible charitable contributions (Pub. 78 data) or a determination on public charity classification (previously a letter request).
• Private foundations giving notice only of intent to terminate private foundation status under section 507(b)(1)(B) (previously provided on Form 8940 or by general correspondence).

Revenue Procedure (‘Rev. Proc.’) 2023-12 updates the procedures for tax-exempt organizations determination letters with respect to Form 8940, requiring the electronic submission of all Forms 8940 filed on or after April 4, 2023. The Rev. Proc. allows for a 90-day transition relief period, in which the Internal Revenue Service (IRS) will accept for processing a completed paper submissions if accompanied by the correct user fee (if any) and if postmarked within 90 days of the effective date of the Rev. Proc. ( July 3, 2023).

Internal Revenue Service Releases its 2023 “Dirty Dozen” Scam List

Each year the IRS compiles a list of tax scams and potentially abusive arrangements that taxpayers may encounter or engage in referred to as the IRS Dirty Dozen. The IRS emphasizes that taxpayers should watch out for and avoid the schemes or abusive attractions throughout the year, not just during tax season.

1. Employee Retention Credit claims
2. Unsolicited emails (‘phishing’) and unsolicited texts (‘smishing’)
3. Online account help from third-party scammers
4. False Fuel Tax Credit claims
5. Fake charities
6. Unscrupulous tax return preparers
7. Social media circulating inaccurate or misleading tax information
8. Spearphising and cybersecurity for tax professionals
9. Offer in Compromise “mills”
10. Schemes aimed at high-income filers, specifically around charitable remainder annuity trusts and monetized installment sales
11. Perceived tax avoidance strategies, including abusive micro-captive insurance arrangements and syndicated conservation easements
12. Schemes with international elements

Did you know?

Revised Form 3115
The IRS released a revised Form 3115, Application for Change in Accounting Method, and Instructions for Form 3115. In Announcement 2023-12, the IRS indicates that taxpayers filing Form 3115 after April 18, 2023 must use the new Form 3115 that was revised in December 2022 and may no longer use the prior version of the form.

Deloitte 2023 Global Life Sciences Outlook
The COVID-19 pandemic magnified the importance of digital advances as life sciences companies raced to meet the demand for new testing, vaccines, and treatments to combat the pandemic. However, with increased competition, a shifting regulatory landscape, and growing demands from patients and providers, life sciences companies face significant challenges and must find ways to differentiate themselves and remain competitive. Our 2023 Global Life Sciences Outlook explores seven trends that are expected to shape the sector. By adopting the right strategies and capabilities, life sciences companies can continue to deliver value to patients, providers, and other stakeholders.

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.

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