Senators Orrin Hatch (R-Utah) and Chuck Grassley (R-Iowa) Feb. 15 sent a joint letter to Acting Internal Revenue Service (IRS) Commissioner David Kautter for details on IRS monitoring and enforcement activities related to non-profit hospitals. The letter requests specific information related to how the IRS evaluates a hospitals’ Form 990, Schedule H, and community health needs assessment (CHNA) (see Washington Highlights, Jan. 9 2015).
The letter, which expressly references Dan Diamond’s Politico article that claimed charity care has fallen in recent years, is the most recent action in Sen. Grassley’s continuing investigation on non-profit hospitals. Sens. Grassley and Hatch also ask for information from the IRS concerning its reviews of hospitals’ compliance with Internal Revenue Code Section 501(r), which sets forth the conditions for eligibility for tax-exempt status. Specifically, the letter requests information about the 968 reviews completed by the IRS, how many hospitals were found not to be in compliance, and to explain the circumstances surrounding the revocation of one hospital’s non-profit status as a result of their incompliance with 501(r).
The IRS must now report back to Congress with the requested information.