January 20, 2015

The IRS has published final amended regulations that are consistent with previous guidance but provide additional clarity and rules specific to charitable hospitals under Section 501(r) of the Internal Revenue Code of 1986. The regulations, which may be accessed here, were published on December 31, 2014, and become effective for tax years beginning after December 29, 2015.

To see previous Polsinelli Updates on Section 501(r) click here and here.

What You Should Do
Charitable hospitals should carefully review the final regulations and ensure that they will be in compliance by the tax year beginning after December 29, 2015. For tax years beginning before December 29, 2015, charitable hospitals may continue to rely on a reasonable, good faith interpretation of Section 501(r), which includes compliance with the previously issued proposed regulations or with the final regulations.

To view the full alert, click here.