The temporary regulations [PDF 19 KB] also state that the Form 4720 must be filed by the hospital organization liable for the section 4959 excise tax by the 15th day of the fifth month after the end of the organization’s tax year during which the liability under section 4959 was incurred.
Thus, for example, a hospital organization reporting on a calendar year basis and that fails to meet the requirements of section 501(r)(3) by December 31, 2013, must file a Form 4720 and pay the section 4959 tax due by May 15, 2014.
The IRS also today released a draft Form 4720 [PDF 302 KB] for comments. Schedule M on this draft version of Form 4720 concerns the section 501(r)(3) excise tax reporting requirements by hospital organizations
Regulations were proposed in early April 2013 to address the requirement under section 501(r)(3) that charitable hospitals conduct community health needs assessments (CHNAs) and adopt implementation strategies at least once every three years.
The April 2013 proposed regulations [PDF 382 KB] also address certain significant issues relating to section 501(r) generally—including the consequences for failure to satisfy any of the requirements of this section of the Code.
The April 2013 proposed regulations, however, did not include provisions regarding the return that hospitals were to file with their remittance of the excise tax under section 4959 or regarding the due date for filing such a return.
Read an April 2013 report [PDF 129 KB] describing the April 2013 proposed regulations and prepared by the tax professionals with the Exempt Organization practice of KPMG’s Washington National Tax: Proposed regulations address more than community health needs assessments
Comments, request for hearing
Today’s proposed regulations [PDF 61 KB] provide that written comments and/or requests for a public hearing concerning today’s regulations are due by a date that is 90 days after publication in the Federal Register—scheduled for August 15, 2013.
For more information, contact:
Rick Speizman, Partner-in-Charge of KPMG's Washington National Tax Exempt Organizations Tax group
+1 (202) 533-3084