Daily Tax Update - December 29, 2014: IRS Issues Final Regulations on Charitable Hospitals

IRS Issues Final Regulations on Charitable Hospitals:   The IRS and Treasury issued final regulations on requirements described in Section 501(r) for charitable hospital organizations under the Affordable Care Act.  Effective today, the final regulations adopt, with changes, two sets of proposed regulations issued in June 2012 and April 2013.  The final regulations provide guidance on various requirements of Section 501(r), such as community health needs assessments, financial assistance policies, and limitations on charges, as well as the consequences for failing to satisfy these requirements. Additionally, the final regulations describe the type of entities that qualify as a “hospital organization” for purposes of Section 501(r).

Tax Filing Season to Open as Scheduled Following Extenders Legislation:  Today, the IRS announced the 2015 tax return filing season will begin as scheduled on January 20.  The announcement comes after the final extenders legislation, signed into law on December 19, prompted concern that the filing season may be delayed.  IRS Commissioner John Koskinen commented, “We have reviewed the late tax law changes and determined there was nothing preventing us from continuing our updating and testing of our systems.”