The IRS yesterday released for comment and discussion a draft Form 990, including a new portion designed to quantify community benefit of tax-exempt hospitals. Form 990 is the annual return required to be filed by tax-exempt organizations to report information about their operations. The IRS hopes to have the form ready for use for the 2008 filing year (returns filed in 2009).
Of special interest to hospitals is a new form, Schedule H, that attempts to quantify the community benefit standard applicable to tax-exempt hospitals. The IRS used the Catholic Health Association's community benefit reporting model for Schedule H, which includes sections on:
- Billing and collection practices
- Management companies and joint ventures
- Community needs assessment
- Identification of all the facilities the organization operates for the provision of hospital or medical care
The redesign of Form 990 is based on three guiding principles:
- Enhancing transparency to provide the IRS and the public with a realistic picture of the organization
- Promoting compliance by accurately reflecting the organization’s operations so the IRS may efficiently assess the risk of noncompliance
- Minimizing the burden on filing organizations
In releasing this redesigned form, the IRS said it is soliciting comments, especially in connection with the goals of increased transparency of information and use as a compliance tool. The comment period lasts until Sept. 14, 2007.
Questions and comments should be e-mailed to the IRS at Form990Revision@irs.gov. Read an overview and highlights from the IRS.
