An IRS notice provides guidance on how tax-exempt hospitals may satisfy the requirement to report providers who provide medically necessary care covered by the financial assistance policy.
Tax-exempt hospitals must generally be in compliance with the final regulations under Sec. 501(r) for tax years beginning after Dec. 29, 2015, for their hospital facilities to remain exempt from federal income tax. This item focuses on what a facility must do when a violation occurs.
The IRS clarified the requirement in Regs. Sec. 1.501(r)-4(b)(1)(iii)(F) that a charitable hospital organization include a provider list in its financial assistance policy.
Final regulations regarding additional requirements charitable hospitals must meet to be treated as tax exempt under Sec. 501(c)(3)) were recently issued and apply to a hospital's tax year that begins after Dec. 29, 2015.
Under Sec. 631(b), gains or losses from the sale of standing timber are considered gains and/or losses from the sale of business use property.
The IRS announced that certain tax-exempt hospitals will be granted an automatic three-month extension to file their 2010 Forms 990.