The IRS has issued draft schedules to the 2016 Form 990, “Return of Organization Exempt from Income Tax” including a draft Schedule H, “Hospitals.”
Read the draft Schedule H [PDF 344 KB]
In general, Schedule H must be filed by tax-exempt hospital organizations that operate hospital facilities. The schedule is divided into a number of sections.
As expected, the changes to Schedule H for 2016 appear to focus on Part V, Section B, where hospital facilities are required to report on compliance with section 501(r). Changes have been anticipated due to the issuance of final regulations under section 501(r) which are generally effective for tax years beginning after December 29, 2015.
The 2015 Schedule H was not fully aligned with the final regulations. Accordingly, new questions have been added to Schedule H, and some questions have been deleted. Section 501(r) has four major components, relating to:
The changes to Schedule H for 2016 relate to each of these requirements, except for those that apply to emergency medical care policies. Many of the changes are significant.
The IRS has not yet released draft instructions for Schedule H, so the full impact of the changes to Schedule H are not known at this time.
The IRS also has yet to release draft 2016 Forms 990 or 990-T, “Exempt Organization Business Income Tax Return”—although drafts of Form 990-EZ, “Short Form Return of Organization Exempt from Income Tax” and Form 990-PF, “Return of Private Foundations” are available. It appears that drafts of all of the 2016 schedules except Schedule A, “Public Charity Status and Public Support” and Schedule J, “Compensation Information” have been released. Use caution in relying on these draft forms and schedules because they are subject to change and cannot be used for filing.
For more information, contact the Managing Director-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group
D. Greg Goller | +1 (703) 286-8391 | firstname.lastname@example.org
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.