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Back  RFI # 717: Tax Amount Placement Inst

Formal vs. Informal Help Informal Formal

Submitter

Chip Evelsizer

Description

Some state jurisdiction rules include mandatory tax charges. These taxes apply to both products and services. For example, in MN, a sales tax for products may apply or a special MN Care Tax may apply for services.

The 837 Inst 4010A1 includes 2 AMT segments, both at the service line level, to carry tax supplemental amount values. The Service Tax Amount is intended for service tax or surcharge suppl amts to the line charges in SV203. The Facility Tax Amount note uses the same description but was changed in 5010 guide to facility tax or surcharge amount.

It is assumed that the MN Care Tax and the MN Product Tax would not both occur on the same service line. The tax rate for the Care Tax is not the same as the rate for Product Tax.

Questions:
What tax amount values are allowed to be submitted in the Inst Service Tax Amount segment?

What tax amounts are allowed to be submitted in the Inst Facility Tax Amount segment?

Where would the MN Care Tax amount be carried in the 837 Inst?

Submitter Assigned Keywords

Tax

Response

The 004010A1X096 Implementation Guide does not contain a segment designed to specifically carry the MN Care Tax or any other State or Jurisdictional Tax identified by a name other than "Service Tax", or “Facility Tax”. The Authors of this Implementation Guide are not at liberty to determine which segment best identifies the MN Care Tax, or any other similar mandated tax. However, both segments allow for the reporting of “a service tax or surcharge” that applies to the service being reported in the SV203.

Recommendation

Submission 12/24/2008
Status Date 4/2/2009
Status F - Final
Primary References
Document 004010X096A1
Section3
Page452
Set ID837
Loop2400
Segment Position475
Segment IDAMT
Industry NameService Tax Amount