Fowler White Health Care eNews

Foreign Assets: New IRS Disclosure Requirements


Richard Jacobson	Mitch Horowitz	Jason Liu

It’s certainly legal to have foreign bank accounts and other investments outside the US. In some cases, it’s expected: as in the case of foreign families moving to the United States or US persons doing business overseas. But beginning in 2012, the Foreign Account Tax Compliance Act (FATCA) requires US taxpayers to disclose certain foreign assets with an aggregate value exceeding $50,000. For married individuals filing jointly, this threshold increases to $100,000 on the last day of the year or $150,000 at any time during the year. Higher thresholds apply to individuals residing outside the US. See IRS Form 8938 (currently in draft). This is in addition to Form 8621 which requires information from US shareholders of passive foreign investment companies (PFIC). Both these Forms are filed with a taxpayer’s income tax return and are in addition to the Report of Foreign Bank and Financial Accounts (FBAR) filed with Treasury. For more information contact Richard Jacobson (813-222-1150, jacobson@fowlerwhite.com), Mitch Horowitz (813-222-1105, mhorowitz@fowlerwhite.com) or Jason Liu (813-222-1163, jason.liu@fowlerwhite.com).

University Fined $115,000 for Discriminatory I-9 Practices

Last December, the Department of Justice (DOJ) filed suit against The University of California San Diego Medical Center (UCSD) for an alleged pattern or practice of requesting excessive I-9 documentation. UCSD has now agreed to pay a civil penalty of $115,000 to settle the lawsuit. The University will also be required to conduct supplemental training of its human resources personnel on their responsibilities to avoid discrimination in the employment eligibility verification process, as well as work with the DOJ to ensure compliance with I-9 processes across all its campuses, medical centers, and facilities.

The DOJ investigation preceding the settlement revealed that the UCSD had a policy of requiring all non-citizen new hires to present a List A document, when in fact they should have been given the option to present either a List A document or a document from each of Lists B and C. The University had also been re-verifying the work authorization of lawful permanent residents, which is a violation of the I-9 laws.

I-9 anti-discrimination settlement agreements in the six figures are becoming more and more common. It is with this in mind that employers are reminded to be conscious of possible discriminatory work verification practices. As the I-9 requirements are complicated and confusing to most employers, many find themselves trying to be extra careful in the hiring and verification process. However, employers should proceed with caution, as efforts that are too careful may turn out to be discriminatory, even if only unintentionally. Additionally, healthcare employers in general are particularly prone to I-9 issues, given the relative size of the industry and the diversity of the workforce and job arrangements. Following the I-9 rules across such a diverse entity can be challenging, which is why healthcare employers in particular should pay close attention to their current I-9 practices and evaluate whether changes are needed.

For more information, please contact Melissa Dearing in the Jacksonville office.

U.S. to Require Drug Companies to Disclose Doctors' Payments

To head off medical conflicts of interest, the Obama administration is poised to require drug companies to disclose the payments they make to doctors for research, consulting, speaking, travel and entertainment. Many researchers have found evidence that such payments can influence doctors' treatment decisions and contribute to higher costs by encouraging the use of more expensive drugs and medical devices.
Read full story at The New York Times.

FDA Proposes Drug Company User Fees to Speed Up Reviews

The Food and Drug Administration would collect hundreds of millions of dollars in new fees from pharmaceutical companies to help speed up the review of generic drugs, under an agreement with the industry released by the agency. The user-fee proposal is one of three such agreements that the agency is submitting to Congress for approval by lawmakers.
Read full story at The Washington Post (free reg. req'd).

Patients Increasingly Gaining Access to Doctors' Notes

Although federal law guarantees patients the right to examine and get copies of their medical records, providers haven't always made it easy to do so. But the movement to give patients direct access to their health information has picked up steam, and policymakers have encouraged it as a way to empower patients to help manage their health and their medical care.
Read full story at Kaiser Health News.

Medical Care Strategy Gives Patients More Access to Primary Docs

Dr. Richard Dupee is an early adopter of a new strategy for providing medical care that is expected to expand rapidly throughout Massachusetts, and that promises to transform the relationship between primary care doctors and their patients. As this system spreads across the state, nearly everyone with health insurance will be required to choose a primary care provider; insurers are considering assigning providers to people who don't make a choice.
Read full story at The Boston Globe (free reg. req'd).

Penalty System to Curb Hospital Readmissions Takes Effect in Fall

Medicare's new penalty system, which takes effect next fall, is designed to prod hospitals to make sure patients get the care they need after discharge and to reduce the number of potentially avoidable readmissions, which by one estimate cost the government $12 billion a year. But critics of the policy say that what happens off the hospital campus can have a huge impact on patient outcomes.
Read full story at Chicago Tribune (free reg. req'd.).

Necessity of Some Routine Medical Tests Being Questioned

Recent headlines offered a fresh example of how the health care system subjects people to too many medical tests -- this time research showing millions of older women don't need their bones checked for osteoporosis nearly so often. Some of the nuts-and-bolts tests given during checkups or hospital visits are getting a second look, too -- things like routine EKGs to check heart health, or chest X-rays before elective surgery.
Read full story at Newsday.

NRC Urges More Study of Nanotechnology Impact on Health

Studying the potential health hazards of nanotechnology will require an additional $24 million a year to close the knowledge gap about the tiny particles used in a fast-growing array of consumer products, the National Research Council said. A new federal oversight agency is also required to integrate research by private business, universities and international groups, the non-profit research council said in a study sponsored by the U.S. Environmental Protection Agency.
Read full story at Reuters.

Hospital Workers Face Challenges from Physicians' Rights

Most employment relationships involve at least some give-and-take, but accepting hospital employment does not necessarily entail physicians giving up positions as members of the hospital medical staff. Yet with physician employment on the rise and a push toward greater integration among hospitals and physicians amid health system reform, the line between medical staff rights and hospital employment obligations is becoming increasingly blurred.
Read full story at American Medical News.

Hospital "Report Cards" Could Affect Bottom Line

"Report cards" for hospitals will affect their bottom line. Beginning in October as part of the Affordable Care Act, hospitals in the U.S. will participate in value-based purchasing. It links hospital outcomes and quality of care for patients to the reimbursement hospitals receive from the government for Medicare.
Read full story at nwi.com.

Increasing Use of Hospice Care Has Many Questioning Practices

Three decades after becoming a Medicare benefit, hospice care has emerged as its fastest-growing cost -- and more than one federal investigation is targeting the nation's largest provider. Now a big question is whether providers like Vitas, a corporate kingpin in a field once dominated by nonprofit groups, are billing the government for patients who are not really on a fast track to the great beyond.
Read full story at The Palm Beach Post.