When the Financial Accounting Standards Board (FASB) met on January 27, 2010, they made some decisions affecting issues related to segment disclosures:

At its meeting today, the Board decided that an entity would also be required to disclose for each reportable segment:

1. A measure of operating cash flow. An entity would also be required to reconcile the sum of operating cash flows of its reportable segments to operating cash flow as reported in the statement of cash flows.

2. A measure of liabilities if that amount is reported to the chief operating decision maker.

3. A measure of operating assets and a measure of operating liabilities.

We would encourage you to review the entire summary of the most recent FASB decisions, and please contact REDW's audit and consulting team for help in evaluating what this means for your business.

If you are a business taxpayer with total assets in excess of $10 million, you should be aware that the IRS is considering making changes to the rules governing how you report uncertain tax positions. IRS Commissioner Doug Shulman drew attention to these proposed changes in the prepared remarks he recently made at the New York State Bar Association Taxation Section Annual Meeting:

Finally, I want to talk about Transparency….

We have been taking a hard look at transparency regarding business tax issues. Accounting for income taxes and tax risk has changed over the past several years. Accounting for uncertain tax positions is much more articulated now than in the past. And auditing firms are conducting much more extensive reviews of materials used to make decisions on tax reserves reflected in a taxpayer’s financial statement.

Several months ago, I announced that the IRS was studying these changes and was exploring ways to improve transparency regarding material tax issues so that we can achieve the three objectives of certainty, consistency, and efficiency for us and taxpayers.

The IRS is taking a major step towards transparency that I want to announce today related to changes we are proposing to reporting requirements regarding business taxpayers’ uncertain tax positions

The Announcement we are issuing today does two things. First, it describes proposed reporting requirement at the “time-of-filing.” Second, it highlights specific areas where we are requesting public comment and thus serves to further our continuing dialogue with practitioners, business taxpayers, and others regarding how to improve tax administration and compliance regarding many of our nation’s business taxpayers.

If after reviewing the full announcement you want to explore what this may mean for you, please contact REDW's tax services team.

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.

There's still a great need for financial assistance to help the victims of the Haiti earthquake. If you're considering making a financial contribution, Congress provided an extra incentive to do so before March 1, 2010:

In a whirlwind procedure, the U.S. Senate by voice vote approved legislation this afternoon to allow taxpayers who make contributions to the Haiti earthquake relief effort between January 12 and February 28, 2010, to take a deduction for those contributions on their 2009 income tax returns.

Those who have already filed their 2009 income tax return may amend to take advantage of the new deduction.

President Obama signed the bill into law one day after it passed the U.S. Senate. If you would like more information about this or any other deductions you can take when filing your 2009 income tax returns, please contact REDW's tax service team.

The information contained in this blog is not intended to be tax advice, is of a general nature, and is based on authorities that are subject to change. Application to your specific situation should be determined in consultation with your tax advisor. IRS Circular 230 Disclosure: Any tax advice in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any matters addressed herein.

In a January 15, 2010 vote, the Medicare Payment Advisory Commission (MedPAC) has issued its FY11 recommendations for Medicare provider payment updates. A review of the information by the Healthcare Financial Management Association (HFMA) notes:

The Medicare Payment Advisory Commission (MedPAC) recommended that Congress give hospitals an FY11 payment update equal to the rate of change in the market basket index, currently projected at 2.4 percent, concurrent with implementation of a pay-for-performance program. However, the commission also recommended coding reductions in the inpatient update of up to 2 percent in 2011, 2012, and 2013, which would reduce the inpatient update to 0.4 percent in FY11.

To stay informed on these and other changes, which may impact your business, please sign up for our email news alerts, or contact REDW's healthcare services team.

A recent letter from the National Congress of American Indians, the National Indian Health Board, and the National Council of Urban Indian Health notes that the health reform bill making its way to the President's desk has far reaching implications for Indian Country's health care system:

From the beginning of the health care reform process, tribal leaders have identified fundamental, key components that must be in place in any health reform legislation. Without them, the Indian health system would be severely damaged, and the rights of Indian people and our sovereign governments would be jeopardized. These key provisions include:

1. Exemption of American Indians and Alaska Natives from Individual Penalties and Cost Sharing

2. Indian Health Provider Protections

3. Exclusion of Health Benefits as Income

4. Indian Health Care Improvement Act Reauthorization

While all of these provisions have been secured – to some degree – in both the House and Senate passed bills, there are significant differences in the language.

The potential impact of the health reform legislation to the Indian Country health care delivery system has not gotten a lot of attention in the mainstream media; however, it will likely have significant ramifications. To better understand what these changes may mean for you as an Indian Country healthcare provider, please contact REDW's healthcare or tribal services teams.