The Effect of the Affordable Care Act on Charitable Hospitals: The New IRC Section 501(r) and the CPA's Role

Authors

William A. Bailey, Central Washington University
Ronald Tidd, Central Washington UniversityFollow
Ryan Cahalan, Deloitte Tax LLP

Document Type

Article

Department or Administrative Unit

Accounting

Publication Date

5-2013

Abstract

In March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act (ACA) into law. Part of the new legislation included the addition of Internal Revenue Code (IRC) section 501(r), “Additional Requirements for Certain Hospitals for Exemption from Tax.” Nearly 60% of hospitals in the United States are tax-exempt under the IRC. The new subsection adds additional requirements for current and future tax-exempt hospitals to keep or receive tax-exempt status. Failure to comply with the IRC section 501(r) requirements can result in monetary penalties, as well as the loss or denial of a hospital's tax-exempt status.

Comments

This article was originally published in The CPA Journal. The full-text article from the publisher can be found here.

Due to copyright restrictions, this article is not available for free download through ScholarWorks @ CWU.

Recommended Citation

Bailey, W.A., Tidd, R.R., & Cahalan, R. (2013). The effect of the Affordable Care Act on charitable hospitals: The new IRC Section 501(r) and the CPA's role. The CPA Journal, 83(5), 57-62.

Journal

The CPA Journal