Category Archives: Tax-Exempt

Activities Unrelated to the Medicare Shared Savings Program and Tax Exemption for ACOs

Last November, the IRS released Revenue Ruling 201145025 denying an application for tax-exempt status of an entity owned by a tax-exempt hospital (the “Entity”).  The Entity primarily contracted with commercial payors to provide hospital services and physician services.  The Entity’s activities are comparable to the activities an Accountable Care Organization (ACO) may conduct unrelated to the Medicare Shared Savings Program (the “Savings Program”), such as shared savings programs with commercial payors.  The Revenue Ruling, therefore, provides additional guidance regarding the IRS’ concerns relating to the activities of ACOs that are unrelated to the Savings Program. Continue reading

IRS Temporarily Suspends e-file for Form 990 and others

Due to the implementation of system updates, the IRS has announced that the Modernized e-file (MeF) system for electronic filing of Forms 990, 990-EZ and 990-PF, among others, will be unavailable from January 1, 2012 through February 29, 2012.  Continue reading

Potential Pitfalls of Alternative Revenue Strategies

Due to increasing financial pressures, many nonprofit health care organizations are looking for alternative ways to generate revenue, such as leasing vacant space in buildings, entering into management contracts, or selling unrelated services. Prior to committing to an alternative revenue strategy, such as those listed above, the organization must carefully consider the various tax and, where applicable, bond/private use  implications of such a transaction. For a discussion of these issues, see our latest issue of Perspectives, available here ——> Perspectives,  November 2011.