Form 990 - Schedule H instructions for 2013 

January 2: The IRS posted the final version of the instructions for Form 990, Schedule H, Hospitals, for tax years beginning in 2013.

Significant changes include:


  • A clarification that self-pay and prompt-pay discounts do not constitute financial assistance policies
  • A clarification that contributions restricted by the organization to community benefit activities are reportable in Part I, Line 7i only if the restriction is in writing
  • A change in the definition of “direct offsetting revenue” to include restricted grants and contributions used to provide a community benefit
  • The ability to include a reference to the page number of the organization’s audited financial statements that includes a description of its bad debt expense (rather than including the text of the footnote)
  • A clarification that the community health needs assessment (CHNA) addresses the community’s “significant” health needs A clarification that a “Yes” response to Part V, Section B, Line 18 requires the hospital facility’s written emergency policy to prohibit debt collection activities from occurring in venues where such activities could interfere with the treatment of emergency medical conditions without discrimination

KPMG observation

KPMG tax professionals have annotated a version of the new instructions—with new language noted with “yellow” highlights: Schedule H Instructions [PDF 887 KB]



For more information, contact:


Rick Speizman, Partner-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group

+1 (202) 533-3084





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