Tax-Exempt Hospitals: IRS Community Benefit Questionnaire

In support of its Community Benefit compliance initiative focused on tax-exempt hospitals, the Internal Revenue Service (“IRS”) has begun to issue a Compliance Check Questionnaire to hospitals throughout the country. In the initial phase of the initiative, the IRS plans to contact approximately 600 tax-exempt hospitals to obtain information via the Compliance Check Questionnaire. Similar to the process utilized by the IRS during its Executive Compensation compliance initiative of 2005, the questionnaire portion of the Community Benefit compliance initiative is not an official audit; however, the information obtained from the questionnaire may lead to audits if deemed necessary upon review of each hospital’s compliance with rules and regulations.

The Community Benefit Compliance Check Questionnaire, Form 13790, is a nine-page questionnaire which contains 81 questions covering such topics as patient make-up, emergency room, medical staff privileges, medical research, medical education and training, uncompensated care, billing practices, board of directors and executive compensation.

If your organization has received a Community Benefit Compliance Check Questionnaire and would like assistance with preparation of a response, or if you would like to discuss matters regarding the IRS Community Benefit compliance initiative in further detail, please contact Eddie Phillips, Terry Haefner or Debbie Ernsberger at (800) 270-9629.

WE ARE REQUIRED BY IRS CIRCULAR 230 TO INFORM YOU THAT THE FOLLOWING DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, NOR RELIED UPON, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED UNDER FEDERAL TAX LAW.  THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED IN THE DISCUSSION.  EACH TAXPAYER SHOULD SEEK ADVICE BASED ON ITS PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.

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