The Law of Tax-Exempt Healthcare Organizations 2016 Supplement

By Thomas K. Hyatt and Bruce R. Hopkins

Get up to date on 2016 healthcare law and newly relevant issues

The Law of Tax-Exempt Healthcare Organizations 2016 Supplement provides complete and comprehensive practitioner updates and analysis in a single volume. Tackling complex legal issues with plain-English explanations and the appropriate citations, this guide is a must-have resource for organizations and their advisors. This new supplement to the Fourth Edition has been fully updated with the latest IRS guidance and requirements, and expanded with additional coverage of relevant topics. The new discussion includes healthcare reform and the Affordable Care Act, the fiduciary duty of directors on the governing body of nonprofit organizations, executive compensation, activities of tax-exempt organizations that appear more commercial than charitable, political campaign activity, charitable reforms, restrictions on supporting organizations, intermediate sanctions, and much more. The companion website provides extensive appendices for further reference, as well as helpful downloadable tables that facilitate a more efficient approach to practice.

Healthcare law is a complex field, and keeping up with the frequent changes to federal law is itself a full time job. This book eliminates the need for extended research time by collecting all of the newest and relevant guidelines into one place.

• Get up to date on the latest IRS forms, guidance, and procedures
• Interpret complex legal issues correctly and appropriately
• Reference relevant federal guidelines quickly and easily
• Access extensive appendices and tables to streamline application

As the field evolves and new issues arise, practitioners need a working knowledge of the legal implications behind organizational activities, structure, practices, and more. This most recent annual supplement to The Law of Tax-Exempt Healthcare Organizations is a must-have resource for anyone in the field.

• Language: English
• Publisher: Wiley
• Release date: Apr 5, 2016
• ISBN: 9781118874189

Book preview

Table of Contents

Title Page

Copyright

Chapter One: Tax-Exempt Healthcare Organizations—An Overview

§ 1.2 Defining Tax-Exempt Organizations

§ 1.5 Charitable Healthcare Organizations

§ 1.10 ABLE Programs

Chapter Four: Private Inurement, Private Benefit, and Excess Benefit Transactions

§ 4.4 Private Inurement—Scope and Types

§ 4.6 Essence of Private Benefit

§ 4.9 Excess Benefit Transactions

Chapter Five: Public Charities and Private Foundations

§ 5.6 Recognition of Change in Public Charity Status

Chapter Seven: Lobbying and Political Activities

§ 7.1 Legislative Activities Limitation

§ 7.4 Political Activities Limitation

§ 7.8 Political Activities of Social Welfare Organizations

Chapter Nine: Managed Care Organizations

§ 9.5 Recent Developments

Chapter Thirteen: Other Provider and Supplier Organizations

§ 13.3 Qualified Nonprofit Health Insurance Issuers

§ 13.5 Accountable Care Organizations

Chapter Sixteen: For-Profit Subsidiaries

§ 16.3 Attribution of Subsidiary's Activities to Exempt Parent

Chapter Eighteen: Business Leagues

§ 18.1 Business Leagues in General

Chapter Nineteen: Other Health-Related Organizations

§ 19.4 Hospital Management Services Organizations

Chapter Twenty: Healthcare Provider Reorganizations

§ 20.1 Some Basics About Reorganizations

Chapter Twenty-One: Mergers and Conversions

§ 21.4 Conversion from Nonexempt to Exempt Status

Chapter Twenty-Four: Tax Treatment of Unrelated Business Activities

§ 24.2 Definition of Trade or Business

§ 24.3 Definition of Regularly Carried On

§ 24.12 Laboratory Testing Services

§ 24.18 Other Exceptions to Unrelated Income Taxation

§ 24.20 Revenue from Controlled Organizations

Chapter Twenty-Five: Physician Recruitment and Retention

§ 25.5 Specific Recruitment and Retention Techniques

Chapter Twenty-Six: Charity Care

§ 26.10 Additional Statutory Requirements for Hospitals

Chapter Twenty-Seven: Worker Classification and Employment Taxes

§ 27.7 Medical Residents and the Student Exception

Chapter Twenty-Eight: Compensation and Employee Benefits

§ 28.5 Overview of Employee Benefits Law

Chapter Thirty: Tax-Exempt Bond Financing

§ 30.3 Disqualification of Tax-Exempt Bonds

Chapter Thirty-One: Fundraising Regulation

§ 31.2 Federal Law Regulation

Chapter Thirty-Three: Governance

§ 33.4A IRS Ruling Policy

Chapter Thirty-Four: Exemption and Public Charity Recognition Processes

§ 34.1 Exemption Recognition Process

§ 34.5 Public Charity Status

§ 34.6 Group Exemption

§ 34.8 Procedure Where Determination is Adverse

§ 34.9 Constitutional Law Aspects of Process

Chapter Thirty-Five: Maintenance of Tax-Exempt Status and Avoidance of Penalties

§ 35.4 Redesigned Annual Information Return

§ 35.5 Disclosure Requirements

§ 35.6 IRS Disclosure to State Officials

Chapter Thirty-Six: IRS Audits of Healthcare Organizations

§ 36.2 Audit Procedures

Index

End User License Agreement

the law of tax-exempt healthcare organizations

2016 Supplement

4th Edition

Thomas K. Hyatt and Bruce R. Hopkins

Title Page

This book is printed on acid-free paper.

Copyright © 2016 by John Wiley and Sons, Inc. All rights reserved

Published by John Wiley & Sons, Inc., Hoboken, New Jersey

Published simultaneously in Canada

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Library of Congress Cataloging-in-Publication Data:

ISBN 978-1-118-53285-0 (main edition)

ISBN 978-1-118-87378-6 (supplement)

ISBN 978-1-118-87412-7 (ePdf)

ISBN 978-1-118-87418-9 (ePub)

Cover Design: Wiley

Cover Image: © Getty Images/BSIP/UIG

CHAPTER ONE

Tax-Exempt Healthcare Organizations—An Overview

§ 1.2 Defining Tax-Exempt Organizations

§ 1.5 Charitable Healthcare Organizations

§ 1.10 ABLE Programs

§ 1.2 Defining Tax-Exempt Organizations

p. 9. Insert as second paragraph:

The U.S. Supreme Court, reflecting these principles, wrote that a nonprofit entity is ordinarily understood to differ from a for-profit corporation principally because it ‘is barred from distributing its net earnings, if any, to individuals who exercise control over it, such as members, officers, directors or trustees.’²³.¹ The Court has discussed the concept of nonprofit organizations on other occasions.²³.² (Of course, before there can be a nonprofit organization or a tax-exempt organization, there must first be an organization.²³.³)

§ 1.5 Charitable Healthcare Organizations

p. 15. Insert following existing text at note 79:

Meanwhile, state courts continue to challenge the qualification of hospitals as charitable organizations for real property tax exemption purposes. In a 91-page decision that describes the current structure and operations of the majority of hospitals in the United States, the New Jersey Tax Court revoked property tax exemption for Morristown Memorial Hospital. The court concluded that [i]f it is true that all non-profit hospitals operate like the Hospital in this case…then for purposes of the property tax exemption, modern non-profit hospitals are essentially legal fictions.…Clearly, the operation and function of modern non-profit hospitals do not meet the current criteria for property tax exemption under [New Jersey law.]