March 2024 Market Update

In this month’s video, Avantax’s Ivan Gruhl provides a market update for March, recaps returns for February, and then discusses the Federal Reserve, interest rates, and inflation.

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Understanding the Employee Retention Credit Voluntary Disclosure Program

The Employee Retention Credit Voluntary Disclosure Program is an IRS initiative for businesses that mistakenly claimed the Employee Retention Credit. It helps avoid severe penalties and potential criminal charges due to unintentional misfiling or erroneous claims.

The program requires you to:
• Voluntarily pay back the ERC, minus 20%,
• Cooperate with any requests from the IRS for more information, and
• Sign a closing agreement.


Advantages of the ERC Voluntary Disclosure Program

There are several benefits to using the ERC-VDP if you received the ERC but weren’t entitled to it and now want to pay the money back. If you apply to the ERC-VDP:
• You need to repay only 80% of the ERC you received as a credit on your return or as a refund.
• You don’t need to repay any interest you received on your ERC refund.
• You don’t have to amend income tax returns to reduce wage expense.
• The 20% reduction is not taxable as income.
• The IRS will not charge penalties or interest on the claimed ERC amount if you pay it in full (claimed ERC minus 20%) by the time you return your signed closing agreement to IRS.
• The IRS won’t examine ERC on your employment tax return for tax period(s) resolved within the terms of ERC-VDP.

Who can apply to the ERC Voluntary Disclosure Program?

Businesses, tax-exempt organizations, and government entities are eligible to apply for the ERC-VDP for each tax period that meets all of the below-listed requirements.
• Your ERC claimed on an employment tax return has been processed and paid as a refund, which you have cashed or deposited, or paid in the form of a credit applied to the tax period or another tax period.
• You now think that you were entitled to $0 ERC.
• You’re not under employment tax examination (audit) by the IRS.
• You’re not under criminal investigation by the IRS.
• The IRS has not reversed or notified you of intent to reverse your ERC to $0. For example, you received a letter or notice from the IRS disallowing your ERC.


If you used a third-party payer to file your employment tax returns or claim your ERC, you can’t apply to the ERC-VDP yourself. You must contact the third-party payer to apply.
Please note that if you willfully claimed an ERC that is fraudulent, or if you assisted or conspired in such conduct, applying to the ERC-VDP will not exempt you from potential criminal investigation and prosecution.

If you’re not eligible to participate in ERC-VDP because your ERC hasn’t been paid or if you have not yet deposited the ERC check, you may be able to use the ERC claim withdrawal process instead.

For more information on the withdrawal process go to: https://www.irs.gov/newsroom/withdraw-an-employee-retention-credit-erc-claim

For more information on the ERC-VDP go to: https://www.irs.gov/coronavirus/employee-retention-credit-voluntary-disclosure-program

Critical Deadline: March 22, 2024
Apply by this date to repay only 80% of the previously received ERC, significantly easing your business’s financial burden. Miss this chance, and you may face larger repayments and penalties.

If you have any questions or concerns, please do not hesitate to contact your HSC service leader or call our office at 800.880.7800.

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January 2024 Market Update: 2023 Recap, Inflation, Earning, 2024 Outlook

In this month’s market update video, Ivan Gruhl, CFA®, Co-Chief Investment Officer at Avantax recaps returns through December and the year 2023 and then shifts to a discussion on inflation, earnings, and our outlook and positioning for the year ahead.

This video is provided through a partnership between Harding, Shymanski & Company P.S.C and Avantax®

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Healthcare News

Indiana Medicaid Rate Equalization

Good news for Indiana Medicaid providers.  Due to a 2020 CMS final rule, Indiana Medicaid is required to reimburse with consistent rates across all programs.  Instead of reducing the HIP rates to Medicaid rates, they have agreed to raise the Medicaid rates for professional services to 100% of the prior year’s Medicare rates.  Thus, all Indiana Medicaid and Indiana HIP plans will pay at the 2023 Medicare rates starting in January 2024. 


American Medical Association Announcement

American Medical Association announced 2024 Medicare fee schedule.  The final rule includes a 3.37 percent reduction in the 2024 Medicare conversion factor, lowering it from $33.8872 to $32.7442. Additionally, the anesthesia conversion factor is finalized to be reduced from $21.1249 to $20.4349.  Please see link for additional information.   

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Legacy Leadership: Transition, Tax and Financial Triumph – Louisville Seminar Resources

Market Update for December 2023

In this Market Update, Ivan Gruhl recaps returns through November, discusses the drivers of performance and the economy, and lays out Avantax’s outlook for the remainder of the year and beyond.

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Legacy Leadership: Transition, Tax, and Financial Triumph

Don’t miss HSC’s “Legacy Leadership: Transition, Tax, and Financial Triumph” seminar. Get the latest insights from thought leaders, dive into succession planning, and stay in the know about the ever-changing financial markets. Secure your spot: https://bit.ly/47p6SgD

Save the dates:

November 14: Evansville Country Club, Evansville, IN

December 12: The Reserve, Jeffersonville, IN

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Due to local weather conditions, our offices will be closed Thursday, February 3rd.  Please check our website homepage for updates on our office hours for Friday, February 4th.

Utilizing technology, we’re able to continue working remotely despite the office closure. Our staff is available via e-mail, and we will be checking voice mail messages periodically throughout the day.

We appreciate your patience during our winter weather challenges.

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