Demonstrating that hospital finances and billing practices continue to be of interest to federal lawmakers, on August 7, a group of bipartisan senators sent letters to the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) questioning the oversight of nonprofit hospitals. Sens. Elizabeth Warren (D-MA), Chuck Grassley (R-IA), Raphael Warnock … Continue Reading
In recent weeks, we’ve highlighted provisions of the House and Senate tax bills that impact tax-exempt bonds. However, the bills contain other provisions which may have a significant impact on tax-exempt organizations, including hospitals and other tax-exempt health care providers. Specifically, provisions in the bills regarding charitable giving, tax-favored financing, governance and compensation, political activity, unrelated … Continue Reading
Last week, our tax experts summarized certain provisions of the House tax reform bill which would affect the exclusion from gross income of interest on tax-exempt bonds. This week, we summarize the Senate’s version of the bill which, in contrast, makes no changes to the existing provisions of the Internal Revenue Code that permit the issuance of certain … Continue Reading
The House Committee on Ways and Means has released the first draft of the federal tax reform bill. This bill, if adopted, would profoundly affect the exclusion from gross income of interest on tax-exempt bonds. Our public finance and tax experts have prepared a detailed summary for our Public Finance Tax blog. A link to … Continue Reading
The House Ways and Means Committee approved legislation that would repeal the taxes enacted to fund the Affordable Care Act, and defer for five years the “Cadillac tax” on expensive health insurance policies. It also approved eliminating the penalty tax for not having health insurance, adopting a new refundable credit to help Americans pay for … Continue Reading
On August 22, 2016, the IRS released new safe harbors from private business use of tax-exempt bond-financed facilities for management contracts that substantially change the prior safe harbors under Rev. Proc. 97-13. The new revenue procedure, Rev. Proc. 2016-44, provides more flexibility and appears to be more favorable than Rev. Proc 97-13. The new safe harbors … Continue Reading
The National Office of the Internal Revenue Service (“IRS”) released Private Letter Ruling (“PLR”) 201622003 on May 27, 2016. This recent PLR provides additional guidance on management contracts and private business use issues related to tax-exempt bonds. A full-length commentary on PLR 201622003 authored by Michael Cullers is available on Squire Patton Boggs’ Public Finance Tax Blog.… Continue Reading
In the months that have followed King v. Burwell, the spotlight on the ACA’s Cadillac tax has grown hotter for groups interested in the reform, and repeal, of the ACA. The King v. Burwell decision, in large part, moved the debate over the future of ACA from the courtroom to the other governmental branches, as … Continue Reading
On December 29th, the IRS released final regulations regarding Internal Revenue Code Section 501(r). Section 501(r) was added to the Code as part of the Accountable Care Act and imposes certain requirements on charitable hospitals. In general, the final regulations provide guidance on hospital obligations under Section 501(r), define the types of entities that must … Continue Reading
With approximately two months having passed since the end of the government shutdown, the fundamental question still remains; what exactly did Congress achieve through the contentious shutdown negotiations? The shutdown was spurred in part by certain Congressional Members’ opposition to the funding and implementation of the Affordable Care Act (“ACA”). A centerpiece of these oppositional … Continue Reading
On Wednesday, March 20, 2013, armed with a publicly circulated legal opinion and a complaint filed in the Court of Common Pleas of Allegheny County, the City of Pittsburgh initiated its challenge to the payroll tax exemption claimed by the University of Pittsburgh Medical Center (“UPMC”), which claims the exemption on the basis of its … Continue Reading
