On Wednesday, April 3, the Internal Revenue Service (“IRS”) released a new round of Proposed Regulations that expand upon, and address uncertainties regarding, the requirements of Code Section 501(r) applicable to tax-exempt hospital organizations. These new Proposed Regulations provide guidance on the community health needs assessment requirements and related excise tax and reporting obligations. Notably, these Proposed Regulations clarify the consequences for failing to meet the various requirements under Code Section 501(r) and signal that minor omissions and inadvertent errors will not result in loss of tax-exempt status, provided that certain specified correction and disclosure steps are taken.
In the coming days, Hall Render will publish a summary and analysis of the provisions found in the Proposed Regulations. Until then, the pre-publication version of the Proposed Regulations may be accessed here.
If you need additional information about the requirements of Code Section 501(r), please contact Calvin Chambers at 317-977-1459 or firstname.lastname@example.org, Jeff Carmichael at317-977-1443 or email@example.com or your regular Hall Render attorney.
Please visit the Hall Render Blog at http://blogs.hallrender.com/ for more information on topics related to health care law.