Medicare and California Sales Tax An Analysis

Theres a rumor going around that a 3.8 percent sales tax will be applied to home sales in order to fund Medicare under the Affordable Care Act. Although that rumor is patently false, there has always been sales tax associated with certain Medicare-covered transactions.

Specifically, if your firm sells medical supplies and has been treating sales under Medicare Part B (Medicare B) as exempt from California sales tax, it is sitting on a fiscal time bomb. Since the program began, the California State Board of Equalization (Board) has been regularly assessing sales tax on Medicare B transactions in its audits.

Even businesses reporting correctly are generally confused about why sales under Medicare B are treated differently from sales under Part A. This article will discuss the different treatments and explain how sales tax applies to Medicare receipts in general.

Some sales under Medicare are always exempt, simply because the products involved fall under the general California exemption for prescription medicines. However, such transactions are outside the scope of this article, which solely addresses products ordinarily considered taxable when sold to patients. (Medical services are exempt from sales taxes in general, in California and nearly everywhere else.)

In order for an otherwise taxable product to be exempted from sales tax under Medicare, the product must be considered sold to the United States government rather than to the patient. Sales to the U.S. government are exempt from sales tax for Constitutional reasons. This exemption has been codified in California Revenue and Taxation Code Section 6381 and is further delineated by Sales and Use Tax Regulation 1614.

Whether a Medicare transaction is considered an exempt sale to the U.S. government or a taxable sale to an individual patient depends on whether the sale falls under Medicare Part A or Part B. All sales under Part A are regarded as exempt sales to the U.S. government. Sales under Part B are considered made directly to the patient, and they are taxable unless some other exemption applies (such as the exemption for sales for resale or sales in interstate commerce). Differences between Parts A and B that give rise to this distinction are discussed below.

Financing and Participation:

Medicare A is financed through payroll withholding and self-employment taxes. Participation is mandatory for anyone within the Social Security system. Most people who pay the taxes that fund Medicare A are under retirement age and not yet eligible for Medicare coverage.

Medicare B is financed partly through monthly premiums paid by those covered under the program. The rest of the financing comes from general funds of the federal government. Anyone covered by Part A is eligible for Part B, but participation in Part B is optional. Once participants enroll in the Medicare B program, they are required to pay the monthly premiums, generally through withholding from their Social Security checks.

Cost to Participants:

Medicare A is funded entirely through self-employment taxes and the Medicare percentage withheld from employee paychecks and matched by employers. There are no costs specific to participants.

Medicare B is charged directly to each participant, generally by a monthly deduction from the participants Social Security check. The monthly costs are considered medical insurance premiums and may be claimed as an itemized deduction on the participants income tax return.

Payment of Claims:

Medicare A payments are made directly to providers of medical products or services under a procedure mandated by federal law. Since the law requires direct payment by the U.S. government to providers, medical supplies sold by providers under Medicare A are considered sold to the U.S. Government.

Medicare B payments may be made either to providers or patients. If a provider has agreed to accept assignment of Medicare benefits (which essentially constitutes agreement to accept Medicares version of “reasonable charges”), the provider prepares and submits a claim form and is reimbursed directly by the insurer acting on behalf of the U.S. government. The patient pays only the deductible, co-insurance or non-allowable costs.

If the patient uses a provider who has not agreed to accept assignment of benefits, the patient pays the entire charge and then files a claim for reimbursement. Any such reimbursement goes directly to the patient. Under Medicare B, payments are considered reimbursements of charges to the patient, whether the payments go directly to the patient or to the provider on the patients behalf.

The U.S. Governments Position:

Medicare A does not allow reimbursement for sales taxes charged on medical supplies, based on the theory that providers are selling to the U.S. government and the sales are therefore exempt.

Medicare B has built sales taxes into its calculations of “reasonable charges,” as stated inMedicare Carriers Manualsection 5213. In accepting sales taxes as allowable charges under Medicare B, the U.S. Department of Health and Human Services has taken the position that sales under the program are not sales to the U.S. government.

Sales Tax Effect:

Medicare A payments are made directly by the U.S. government to providers under federal law, which theoretically results in sales to the United States as discussed above.

Medicare B payments may be made either directly to patients or to providers for the benefit of patients, depending on each patients choice of provider. The patients ability to make this choice has been interpreted to mean that payments under Medicare B are simply reimbursements to patients. Under this “patient reimbursement” theory, any sale by the provider under Medicare B is made to the patient rather than the United States, regardless of which party prepares the claim form or receives the reimbursement check.

Both the U.S. Department of Health and Human Services and the State Board of Equalization have accepted these legal interpretations, and it appears unlikely that an effort to re-characterize sales under Medicare B as sales to the U.S. government would prevail. If the law is ever changed to make direct payments to providers mandatory under Part B, the application of sales tax could well change with it.

Although subject to tax, amounts claimed for 80 percent reimbursement under Medicare B are considered to include applicable sales taxes, because the Medicare Carriers Manual defines “reasonable charges” as including such taxes. Accordingly, when providers report their taxable sales to the Board, they are entitled to claim a deduction for sales taxes included in Medicare B reimbursements.

Conclusion:

The theoretical justification for distinguishing sales under Medicare A from sales under Medicare B may not be entirely logical, but compliance with the Board of Equalizations interpretation is the only prudent approach. If you have been treating all sales under Medicare B as exempt, you should now begin reporting those sales as you would report sales to any private party.

But what about earlier periods? If your firm is selected for a Board audit, you undoubtedly will be billed for additional taxes for those periods. However, the amount of additional taxes may be subject to adjustment. This is true not only for Medicare sales but for any area where tax changes are recommended by Board auditors. Audits incorporate assumptions and tests that often can be modified and occasionally can be overcome.

Always remember that you have the right to review any tax auditors working papers or have a sales tax expert review the audit on your behalf. Exercising that right will at least bring you peace of mind. It might also result in significant tax savings.

Legal citizen of U.S requires a tough process, know about it

Dreams may be big or small for all, but dreams are seen by all. Everyone loves to be in a dreamy world and some people are so very determined about their dreams that they turn no stones unturned to make it happen. Elaborating of business is an aspiration for all. All the business people want to have a bigger platform for their business to expand. US are one of the biggest nations over the world. Everyone tries to own a place there so that their lives can be better and bigger as well. The availability of the platform in US is not found that easily. The process of getting US platform is very tough and a person has to go through a lot of rules and regulations to achieve it.

What is EB5 Investment?
Let us jot down some of the points that will make you get to know how about who to make your base over US. The first step to enter over the US world is through EB5 Investment Visa. This is the visa that is used for the foreign nationals for acquiring of the green card and become a legal citizen of United States. The process of getting this visa is not at all easy. For making your business appear in a bigger platform you have to appear for the investment visa. This visa act is created by the Immigration Act of 1990 and is considered as the United States visa. For obtaining that visa it is a long process and the person has to go through a detailed process mode. If anyone wants to obtain the visa then the individuals must invest $1,000,000 or at least $500,000 in a “Targeted Employment Area”, creating and preserving of atleast 10jobs for the U.S worker by each of the migrated company.ny.

Going through such a process will help you to get the EB5 Investment that will help you to acquire a great life and a prosperous business over the world’s most influential state. The business gets a great increase very easily. When you have acquired this then it can be made for sure that you will get a citizenship of the country as well. EB5 Green Card holders are found very rare and they have to go through a tedious process to posses it. Getting green card means that you have the rights to access all types of benefits for its citizens in US. Being a legal citizen is a great achievement for all who have acquired it. it helps the betterment of your life easily.

Now let us focus a bit on what does franchise opportunity all means. It is about to increase your business in a much easier way. The more the outlets of a business, the more its popularity and also the profit benefits are also increased very easily through this opportunity. In short it would not be wrong to say that business gets expanded when the franchises are more.

Alienation of Affection Laws

Alienation of affection is a term used to point to a tort action brought by a deserted spouse against an individual or a group of individuals who are held responsible for the failure of the marriage. A tort is a wrongful act which causes injury or loss to someone. Tort laws deal with such acts where a persons behaviour or act causes an unfair injury or loss to another person. A tort can be intentional or accidental, but not illegal. Tort laws allow victims of tort to recover their losses. Although alienation of affection law is considered outdated and prehistoric by many, there are lawsuits related that can be justified even today. This subject brings numerous legal issues and often brings up questions which cant be answered by the common man that Experts can answer. The top five queries related to alienation of affection are listed below that have been answered by the Experts:

In which states is alienation of affection law recognized?

Each of the United States has their own rules and regulations for this law. However, there are four states in the US, namely, Illinois, Mississippi, Utah and South Carolina that recognize alienation of affection laws.

Is it possible for someone to file a case under alienation of affection law in Maryland?

The state of Maryland has abolished the law, but allows petitions for divorces. Many states have different standards and not every state recognizes this law in general. Experts can answer state specific law questions.

Does the state of Illinois allow someone to sue for alienation of affection after being diagnosed with PTSD (Post Traumatic Stress Disorder) due to an affair?

Although IL recognizes it in some cases, the plaintiff must be able to prove conclusively that the defendants lack of affection was the prime cause of the affair or that PTSD was because of the alienation of affection that was caused by the affair from the spouse.

Can someone from a state which doesnt recognize alienation of affection laws file a case in a different state that recognizes the laws

A person can sue someone for alienation of affection only if the person being sued is a resident of a state that recognizes the laws. Apart from this, a person can also sue someone for any emotional distress caused by the person being sued.

Can a lawsuit be filed by someone in the state of Mississippi for alienation of affection after the divorce has been finalized?

It is possible for someone to be sued for even after the divorce. However, in the state of Mississippi, any lawsuit has to be filed within a time period of 3 years starting from the day on which the divorce was finalized.

Divorce attorneys mostly believe that the laws formed around alienation of affection should be abolished. However, there are certain trial lawyers who support such cases. Alienation of affection can range from employer/employee, parental alienation etc., to the biggest and most common form which is divorce-related. If you have any questions concerning alienation of affection laws www.justanswer.com/family-law.

Get An Idea Of The Different Qualities Of A Good Personal Injury Attorney

Personal injuries may happen anytime and anyplace. However, it is seen, in many cases that people tend to overlook the importance of hiring a personal injury attorney to deal with such mishaps. In most parts of the United States, like Sarasota (FL) and Fruitville (FL), you would come across a number of such lawyers. However, it is important to know that not all are equally experienced to deal with every aspect of such legal matters pertaining to personal injury.

Most of the American citizens, especially those residing in some of the major US cities, like Sarasota (FL) and Englewood (FL), who have interacted with a personal injury attorney recently, would tell you that it is always a good idea to spend some time to find the best lawyer. However, since after such mishaps nobody would have the time to search for a good lawyer, it is better to keep the contact details of a few of them beforehand. Here are some qualities of a good personal injury attorney, which in turn would help you recognize him amongst others:

1.Open for discussion anytime of the day: A good lawyer, who deals in such legal matters, would be ready to help you and also discuss the situation with you anytime of the day. These types of accidents do not announce beforehand of their happening. So it is very important for a good lawyer to be always prepared to help his clients.

2.Willing to keep you updated: One of the great qualities of a good personal injury attorney is that he would never shy away from keeping his clients updated about the happenings of the case in a court of law. If the lawyer refuses to do this basic service, then all his clients would remain in the dark about what is happening to their cases. This in turn would hamper the popularity of the legal adviser and all his future clients would think twice before approaching him for help.

Whatever be the situation, it is always considered to be a good idea to take your time and look for a good and experienced personal injury attorney. Sarasota (FL) and Laurel (FL) are some of those places in the US where you would find a number of people who have kept the contact details of such legal advisers handy. This is good since you never know when you may need one to help you during times of distress.

Mesothelioma Settlements Some Faqs

Considering a legal battle regarding mesothelioma and asbestos exposure can be a scary prospect. However, with the right mesothelioma legal professionals, the process can flow much smoother and most often with better results; including mesothelioma settlements. There are number of questions that many people may have regarding mesothelioma settlements. Below are just a few of the concerns we have heard in recent years.

Are mesothelioma settlements typically subject to income tax fees and requirements?

Generally speaking, settlement money earned from a personal injury is not taxable by most states. This same principle applies to a mesothelioma settlement. However, taxes are charged to the representing Attorney who earns profits from a mesothelioma settlements contingency fee. If mesothelioma settlement monies are invested, then taxes will be applied to interest earned from this personal injury.

What options exist for individuals with limited income, when seeking a mesothelioma settlement?

Quite often, attorneys will offer a special contract for legal services. This contract provides all the necessary legal guidance and representation, with no upfront costs. When a mesothelioma settlement is achieved, the attorney will take a portion of the payoff as their contingency fee. If a mesothelioma settlement is not possible, the contract releases a client from all financial responsibility. With this type of contract, a client has virtually no risk in attempting to obtain a fair and deserved mesothelioma settlement.

How does the Statute of Limitations affect a potential settlement?

In all personal injury cases, each state permits a certain amount of time to pass before the ability to bring a lawsuit expires. This time period varies depending on the state, but in many cases it runs around two years. With an illness thats characteristic evolution involves several years, or even decades, of dormancy, like mesothelioma; there are some difficulties in meeting the typical Statutes of Limitations throughout the United States. For fairness, most states have adopted the Discovery Rule, which enables individuals to bring suit within a specified time period after diagnosis from any latent illness, like mesothelioma. The Discovery Rule is just another way the legal system has responded to right many of the negligent wrongdoings of companies and organizations; ensuring justice and protection for any individuals seeking their rightful, mesothelioma settlement even decades after asbestos exposure.

How soon should an attorney be contacted after diagnosis?

For the best mesothelioma settlement possible, it is highly recommend that an attorney be contacted soon after a diagnosis is received. This ensures that the individual receiving legal assistance is in sound mind and body for initial testimony and official depositions regarding their experience with asbestos contamination.

How Couples Could Benefit From Mediation

So often we hear about how high the rate of divorce is in both the United Kingdom and the United States. Divorces can be emotional, time consuming, and expensive affairs. More than ever, couples are being encouraged to use mediation services in order to solve their difficulties, in order to avoid all the difficulties of a divorce.

When emotions are running high and couples don’t know how they can possibly make things work anymore, divorce can seem like the only way out. Communication is the key to all good relationships and when communication breaks down, relationships tend to break down too. Mediation services are great because they teach you how to talk to each other about how you’re feeling in an open and honest fashion.

It can be difficult to talk about our feelings, even to those who are closest to us. Having difficult conversations can be uncomfortable, and sometimes we need a helping hand. Despite the fact we are arguing with our partner, we generally don’t like upsetting other people.

Conflicts between loved ones can be particularly difficult to handle because relationships are so steeped in history. Mediation is future focused, so an independent mediator will attempt to move the relationship forwards rather than allowing the couple to dwell on past events. Bringing up old arguments and past mistakes does not resolve anything and is no basis for a healthy relationship.

This is one fundamental way in which mediation and divorce differ. Divorce courts do not accept ‘irreconcilable differences’ as a valid reason for couples wanting to split up. They instead insist that fault is blamed on one of the parties involved. This is perhaps why mediation is becoming such a popular option for arguing couples. Divorce is not as simple as one person being wrong and the other right; it is infinitely more complicated than that.

If children are involved, then mediation could be useful for a couple as well. If talking about your differences doesn’t solve them, it could at least bring some civility to proceedings. If you still decide to divorce then it is best to do so in a civil manner, so the children are not left feeling anymore confused and upset than they need to be. Deciding on how often children are to be seen and who stays with who is another big issue when it comes to divorce, and it is better if this can be settled outside of the divorce courts in order to avoid as much distress as is possible.

Ultimately, divorce sometimes is the only option for some couples. However, it is certainly better to do everything in your power to attempt to reconcile the relationship outside of the court room to begin with.

Citizenship and Immigration

For many Americans, their U.S. citizenship issued at birth is something they dont think twice about. But for applying immigrants, citizenship is a serious goal.

Hopefully most American natural born citizens understand that citizenship is one of the most greatly desired gifts this countrys government can bestow on its citizens. For those of us who have not had to go through the process of becoming a U.S Citizen apart from being naturally born here, there is only one other way to become U.S. citizens and that is by the often times-lengthy process of what is known as “naturalization”.

Naturalization can often times be a complicated process so you should consult with an immigration lawyer rather than attempting this yourself. Even something as simple as travel within the country or state is something that a person needs to know the rules about and this is where an Immigration lawyer is needed so that you have someone to ask questions such as “How long does it take for USCIS to issue work permission and travel permission?” or “When should I renew my work and travel permission?”

Learning about your new country and its rights and the responsibilities that accompany citizenship is an important part of being a good citizen and at the USCIS and the Office of Citizenship they have developed a great amount of resources and a variety of educational materials that allow immigrants to learn more about U.S. history and government as they prepare for the naturalization test.

A final thought on the naturalization process; in addition to finding good counsel and being represented by an immigration lawyer, there are general requirements that the USCIS will look for by those who look to make our great country their home, to name just a few: good moral character, a knowledge and understanding of U.S. history and government, and favorable disposition toward the United States.

Potential Immigration Problems after Japan Tsunami Tragedy

As we all are well known about this thing that at that time Japan has suffered with terrible tragedy. It has profoundly affected all of us and made us reflect on the truly important things in life. While dwarfed by other problems that some people may have difficulties in immigration if they does not pay attention.

People those came into U. S. by using the VWP (Visa Waiver Program) are the most vulnerable, because if 90 days of those people are expires while they are in the U.S., they have violated their immigration status, and just because of this they can face problems in the future. If appropriate measures are taken then they may avoid this problem.

The simplest way, in terms of immigration, is to leave the U.S. before the expiry of 90 days, even if they go elsewhere than Japan.

If this is impossible, the U.S. Department of Homeland Security announced that the Japanese tourists and other foreigners to stay in the earthquake and tsunami in Japan, the United States, may be allowed up to an additional 30 days to go . Travelers are currently in the United States under the VWP (Visa Waiver Program), or the possession of a nonimmigrant visa may apply for benefits through the local U.S. Citizenship and Immigration Services office. Persons with a nonimmigrant visa which did not use the VWP may also file an extension by mail by sending the Form I-539 and other documents including an application fee of $ 290. People on the VWP cannot make an extension of the mission and must go to the local immigration office for additional 30 days.

You can request an extension of 30 days of the local immigration is a book much better than going to the office. Making a nomination is a very simple process.

Click on top left of English (unless you prefer one of the other languages there) Click on “Create an info pass appointment Enter your zip code and click “Continue” If you applied for more than one role then please select the most appropriate Select “You need the information services or other” Click to continue File and get your appointment day

Go to the interview, Service Request ID questions relating to the appointment, which you received when you made the appointment online, and stamp your passport and ask you to extend the legal status. For further knowledge on this topic please visit on Global Visas Fraud Department .

Nitin Sharma works as Online Marketer at a British Company. He loves to write articles about Global Visas Fraud and in this way he has submitted many articles over internet. He aware people about the increased fraud cases now days.

What Are The Fees Of A Personal Injury Attorney Las Vegas

Personal injury law is one of the most important branches of law in the United States. Every city in every state has a number of lawyers who practice in this particular branch of law. Victims who have been injured by the fault or carelessness of another can go to court in order to claim for a compensation for their injuries. The offending party, if proven guilty, must pay for all medical expenses along with any added amount that the court sees fit. Sometimes, victims of accidents are injured to such an extent that they cannot continue with their work until they have fully recovered. If the sole bread earner of the family is injured, then the entire family has to suffer financially. This law is there to support the people who have been wronged. However, it is important to remember that personal injury laws differ in every state. A personal injury attorney Las Vegas practitioner, who knows the local law, will be able to help you out in the best way possible.

What are the various reasons that make people hesitate before retaining a lawyer?

A lot of people who have been injured in an accident feel that they can carry the entire case forward without any legal representative. It is important to remember that personal injury claims require a lot of in-depth knowledge of the law. There is a lot of complicating paperwork to be dealt with and an investigative team is also required to prove the claim of the wronged party. A citizen who has no legal experience cannot do this all by himself and therefore it is advisable to retain a lawyer. Many others feel that they will not be able to afford the fees of the lawyers. There is no sure shot of winning a claim and having to pay a lawyer after a loss is a risk that most people do not wish to take. However, all lawyers now work on a contingency basis.

What is contingency fee system?

All cases include compensation if the case is won. A personal injury attorney Las Vegas takes a percentage from the compensation received by the wronged party. If the lawyer doesnt win the case, no fees have to be paid. The percentage depends completely on the amount of compensation received by the wrong party. The fee system is such that benefits the clients and the lawyers. The lawyers try their level best to get maximum possible compensation as they will also be gaining more from it.

About the author:-

This article is written by James Stew. His knowledge and experience in law has helped him to write this informative article on Las Vegas car accident attorney. Whenever you are looking for some valuable information, you can actually go through his articles and get the necessary information.

Excellent Fiancee Visa Service for My Thai Fiancee by USA Immigration Law Thailand

Brian Wrights USA Immigration Law Thailand service was really great for us when I was a several thousand miles away from my Thai Fiancee in Thailand and we needed our Fiancee Visa processed to be done. Brian Wright made everything completely manageable though the stumbling blocks of the fiancee visa process seemed almost insurmountable considering the distance and language barriers. Brian Wright and his staff took the time to make sure we understood the fiancee visa process and kept us from making any mistakes that would have cost us time. Brian Wright even took the time to help us after we returned to the United States and DHS screwed up our paperwork for the Change of Status.

My Thai Fiancee is happily in America I want to thank Brian Wright for the excellent fiance visa service he provided. Everything went very smoothly and he took care of everything exactly as Brian Wright promised.

Having lived and worked around the world, I knew upfront the process for getting a fiance visa was not going to be easy. There are many obstacles to overcome such as the following:

The many documents the Thai applicant must obtain.

The Medical and Police report.

The form in English that need to be completed by the Thai applicant.

Knowledge of the Embassy and the process and customs for a successful application.

The many documents that must be supplied by the petitioner.

Brian Wrights fiance visa service was excellent and he helped make the whole fiancee visa process very simple for both of us. My Fiancee commented many times that she fell very comfortable with the way he was handling the fiance visa application. This helped her to relax and be less anxious through the fiancee visa process.

USA Immigration Law Thailand firms sole area of practice is fiancee visa, marriage visa & CR-1 marriage visa from Thailand to the United States. USA Immigration Law Thailand does not process other types of visas to America, nor does process visas to other countries.

The only additional services USA Immigration Law Thailand provides support the fiancee visa and marriage visa application process.

As a result of USA Immigration Law Thailand firms sole focus on processing fiancee visa and marriage visa from Thailand to the USA, USA Immigration Law Thailand have processed more visas to the USA from Thailand than all other Thailand based and US based immigration attorneys and visa service companies, combined. This has earned USA Immigration Law Thailand firm the distinction of being the most experienced and knowledgeable in this field.

USA Immigration Law Thailand firm, which is based in Thailand and America, is headquartered in Thailand as the primary focus of the visa application process is with your Thai fiance or Thai wife.

I (Anthony S., Pennsylvania, USA) would surely recommend USA Immigration Law Thailand by Brian Wright to anyone trying to get a Visa to the United States from Thailand for Thai Fiance.

Again, thank you for your excellent fiancee visa service.