Providers Who Owe the IRS Should Expect a Dip in Medicare ReimbursementCMS reminds practices that the government can place a levy on Medicare pay if you owe taxes.
Providers who owe back taxes should expect the IRS to come calling in non-traditional ways — in fact, they might just garnish some of their Medicare reimbursement until they’ve paid back what they owe.
According to a recent Centers for Medicare and Medicaid Services transmittal with an effective date of Oct. 1, businesses that owe tax money to the IRS may face levies. “CMS may reduce federal payments subject to the levy by 15 percent, or the exact amount of the tax owed if it is less than 15 percent of the payment,” the transmittal indicates. “The levy is continuous until the overdue taxes are paid in full, or other arrangements are made to satisfy the debt.”
If the government has garnished providers’ Medicare reimbursement, they’ll see the code “WU” in the PLB03-1 data field, along with Medicare’s phone number.
To read the complete CMS transmittal, visit the CMS Web site at www.cms.hhs.gov/transmittals/downloads/R367OTN.pdf. To review the related MLN Matters article, visit the CMS Web site at www.cms.hhs.gov/MLNMattersArticles/downloads/MM6125.pdf.
