Tax administration: IRS oversight of hospitals’ tax-exempt status : testimony before the Subcommittee on Oversight, Committee on Ways and Means, House of Representatives
- Collection:
- Health Policy and Services Research
- Alternate Title(s):
- IRS oversight of hospitals’ tax-exempt status: testimony before the Subcommittee on Oversight, Committee on Ways and Means, House of Representatives
- Contributor(s):
- United States. Government Accountability Office, issuing body. United States. Congress. House. Committee on Ways and Means. Subcommittee on Oversight, addressee
- Publication:
- Washington, DC : United States Government Accountability Office, April 26, 2023
- Language(s):
- English
- Format:
- Text
- Subject(s):
- Charities -- economics Economics, Hospital -- legislation & jurisprudence Government Regulation Legislation, Medical Organizations, Nonprofit Tax Exemption -- legislation & jurisprudence United States
- Genre(s):
- Technical Report
- Abstract:
- Why GAO did this study. Slightly more than half of the approximately 5,000 community hospitals in the United States are private, nonprofit organizations. IRS and the Department of the Treasury have recognized the promotion of health as a charitable purpose and have specified that nonprofit hospitals are eligible for a tax exemption. IRS has further stated that these hospitals can demonstrate their charitable purpose by providing services that benefit their communities as a whole. In 2010, Congress and the President enacted PPACA, which established additional requirements for tax-exempt hospitals to maintain a tax exemption. This testimony discusses the requirements for a nonprofit hospital to qualify for tax-exempt status and challenges with verifying compliance with some of those requirements, and is based on a report that GAO issued in September 2020. This testimony reflects updated information GAO obtained from IRS regarding its implementation of the recommendations made in that report. What GAO recommends. In September 2020, GAO recommended Congress consider specifying what services and activities demonstrate sufficient community benefit. As of April 2023, Congress had not enacted such legislation. GAO also recommended IRS update tax forms to increase transparency about hospitals’ community benefits. IRS agreed and made minor adjustments to the form’s instructions, but the form still relies on a narrative description of community benefits that hospitals provide.
- Copyright:
- The National Library of Medicine believes this item to be in the public domain. (More information)
- Extent:
- 1 online resource (1 PDF file (13 pages))
- Illustrations:
- Illustrations
- NLM Unique ID:
- 9918627771406676 (See catalog record)
- Permanent Link:
- http://resource.nlm.nih.gov/9918627771406676