Drafting error could mean 21% tax hit on CARES Act relief funds

The AMA and many other stakeholders in health care are urging Congress to rectify an apparent CARES Act drafting error that, if left unaddressed, could mean that entities receiving relief funds under the legislation might have to pay taxes on the money they got from the government.

Organizations representing nurses, dentists, hospitals, optometrists, physical therapists and hospices  joined the AMA, the U.S. Chamber of Commerce and others in asking Congress “to clarify and correct” what they “believe are the unintentional tax consequences of policies meant to provide vital funding to health care providers through the Public Health and Social Services Emergency Fund (PHSSEF) and other programs as part of the nation’s response to the novel coronavirus (COVID-19) pandemic.”

My latest for the AMA. The whole shebang.