GOP Senators Question Benefit of Nonprofit Hospitals - McDermott Will & Emery

GOP Senators Question Benefit of Nonprofit Hospitals

Overview


Ralph DeJong said that questions raised over nonprofit hospital compliance with IRS rules show that Congress expects the IRS to exercise rigorous oversight of hospital tax-exempt status, particularly on whether amounts dedicated to charity are commensurate with hospital net income. “Tax-exempt hospitals should bear in mind that expectations for charitable activity, and for justifying their exempt status, are rising,” Mr. DeJong cautioned.