HHS announced $25.5 billion in COVID-19 provider relief funding, and many dentists received funds, which came out in two or three different phases, starting in the third quarter of 2020. Some people even got them in January 2021 based on Medicare, Medicaid, or lost revenue.
If you got HHS relief funding, you may have been thinking, “I got that. What do I do with it? How does it work?”
Here’s a quick look at using and reporting on the funds.
Using the Funds
The idea was that you would use the funds for specific expenses primarily related to COVID-19, like supplies and equipment; staffing, benefits, and utilities; or lost revenue. The original plan was that you would have two phases of reporting on that. And if you received the funds, then you had a deadline to spend them by June 30, 2021.
There was one caveat: You couldn’t report the same expenses that you used for, say, PPP forgiveness. So, that’s something that should have been kept in mind as you totaled these things up.
Reporting the Funds
The reporting got a little complicated because there were several changes made to the program, so the original deadline was basically null and void. The best advice for reporting was to visit the HHS website and register for the reporting portal. If you weren’t able to do that at the time, then they contacted you as soon as that availability was there so you could do your reporting.
Keep Your Practice Running Smoothly
There have been many curveballs tossed at practice owners over the last year or so, and all the funding and assistance throughout the pandemic has made finances a little more complicated. If you’re not sure what to do, we always advise talking with your CPA so you can sort things out prior to tax season and keep your practice running smoothly all year long.
At Duckett Ladd, we know you want to successfully run your practice and achieve your ideal quality of life. Our accounting, tax planning, and business strategy services can help you do it. To find the fastest solution to your business challenges, get in touch with our team today!
Duckett Ladd, LLP does not provide tax, legal, or accounting advice. This content has been prepared for informational purposes only and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Also, tax law is ever-changing and every effort should be made to seek out the most current information. Make sure to check the date of published content to ensure the most current information.