The Law of Tax-Exempt Healthcare Organizations, + website

Thomas K. Hyatt, Bruce R. Hopkins

• Publisher: Wiley
• Year: 2019
• Print ISBN: 9781119539889
• eBook ISBN: 9781119539865
• Edition: 4
• Topic: Business
• Subtopic: Nonprofit Organizations & Charities
• Index: Business

Get up to date on 2019 healthcare law and newly relevant issues

The Law of Tax-Exempt Healthcare Organizations 2019 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. 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.

CHAPTER ONE
Tax-Exempt Healthcare Organizations: An Overview

• § 1.2 Defining Tax-Exempt Organizations
• § 1.5 Charitable Healthcare Organizations
• *§ 1.8 Promotion of Health
• § 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 the 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.]” AHS Hospital Corp., d/b/a Morristown Memorial Hospital v. Town of Morristown, 2015 BL 206190 (N.J. Tax Ct. 2015). See generally, Paff, “Is Your Nonprofit Hospital's Property Tax Exemption Safe?,” Bloomberg Daily Report for Executives, August 25, 2015.

*§ 1.8 PROMOTION OF HEALTH

p. 20. Insert at end of first paragraph:

In some instances, activities that would seem to promote health are insufficient to support qualification as a charitable organization. An organization was formed to promote sports, recreation, health, and fitness through church leagues and tournaments, exercise programs, and recreational activities. The organization's goal was to organize adult and youth athletic competitions. Its proposed sources of financial support were ticket sales, advertising income, auctions, annual fundraisers, and donations.

The IRS determined that the organization did not qualify as a charitable organization because it did not meet the organizational or operational tests for charitable status. The IRS focused on the fact that the bulk of the organization's activities were geared toward encouraging sports, recreational, and social interaction between adults. These are not exempt purposes in the IRS's view. Sports and social and recreational activities are not considered exempt activities. The IRS distinguished other guidance in which sports were provided to children under the age of 18. Recreational sports for adults are not considered charitable or educational purposes, according to the IRS.^118.1

p. 22. Insert following existing material:

§ 1.10 ABLE PROGRAMS

The newest category of tax-exempt organization, modeled somewhat on the state-sponsored qualified tuition program,¹³⁷ is the ABLE program.¹³⁸ This is a program established and maintained by a state, or agency or instrumentality of a state, under which a person may make contributions for a tax year, for the benefit of an eligible individual, to an ABLE account that is established for the purpose of meeting the qualified disability expenses of the designated beneficiary of the account.¹³⁹ A designated beneficiary may have only one ABLE account.¹⁴⁰ A beneficiary must be a resident of the state that established the program or a resident of a contracting state.¹⁴¹ An interest in an ABLE program may not be used as security for a loan.^1...

Table of contents

• Cover
• Table of Contents
• Preface
• About the Authors
• Book Citations
• CHAPTER ONE: Tax-Exempt Healthcare Organizations: An Overview
• CHAPTER THREE: Public Charities and Private Foundations (New)
• CHAPTER FOUR: Private Inurement, Private Benefit, and Excess Benefit Transactions
• CHAPTER FIVE: Public Charities and Private Foundations
• CHAPTER SEVEN: Lobbying and Political Activities
• CHAPTER EIGHT: Hospitals
• CHAPTER NINE: Managed Care Organizations
• CHAPTER THIRTEEN: Other Provider and Supplier Organizations
• CHAPTER SIXTEEN: For-Profit Subsidiaries
• CHAPTER SEVENTEEN: Exempt and Nonexempt Cooperatives
• CHAPTER EIGHTEEN: Business Leagues
• CHAPTER NINETEEN: Other Health-Related Organizations
• CHAPTER TWENTY: Healthcare Provider Reorganizations
• CHAPTER TWENTY-ONE: Mergers and Conversions
• CHAPTER TWENTY-TWO: Partnerships and Joint Ventures (New)
• CHAPTER TWENTY-FOUR: Tax Treatment of Unrelated Business Activities
• CHAPTER TWENTY-FIVE: Physician Recruitment and Retention
• CHAPTER TWENTY-SIX: Charity Care
• CHAPTER TWENTY-SEVEN: Worker Classification and Employment Taxes
• CHAPTER TWENTY-EIGHT: Compensation and Employee Benefits
• CHAPTER THIRTY: Tax-Exempt Bond Financing
• CHAPTER THIRTY-ONE: Fundraising Regulation
• CHAPTER THIRTY-THREE: Governance
• CHAPTER THIRTY-FOUR: Exemption and Public Charity Recognition Processes
• CHAPTER THIRTY-FIVE: Maintenance of Tax-Exempt Status and Avoidance of Penalties
• CHAPTER THIRTY-SIX: IRS Audits of Healthcare Organizations
• Cumulative Table of Cases
• Cumulative Table of IRS Revenue Rulings
• Cumulative Table of IRS Revenue Procedures
• Cumulative Table of IRS Private Letter Rulings
• Cumulative Table of IRS Technical Advice Memoranda
• Table of Chief Counsel Advice Memoranda
• Cumulative Table of IRS General Counsel Memoranda
• Table of Tax Reform Legislation
• Cumulative Index
• End User License Agreement