The IRS has extended the deadline for hospitals to comply with any community health needs assessment (CHNA) requirements until December 31.
Notice 2020-56, 2020-32 IRB 1, released July 14, extends the deadline for affected tax-exempt hospitals to conduct CHNAs and adopt implementation strategies to meet the identified community health needs, and it applies to deadlines previously set between April 1 and December 31 of this year.
The IRS had already previously extended the deadline to July 15, it noted in a release.
Tax-exempt hospital organizations filing Forms 990 must indicate on Schedule H whether they have conducted a CHNA in the current tax year or in either of the two immediately preceding tax years, according to the release. They also must indicate whether they have adopted an implementation strategy to meet the significant health needs identified through the most recently completed CHNA.
“Since these requirements may affect the hospital’s tax-exempt status and because the law imposes a $50,000 tax on a hospital organization for each hospital facility that fails to meet either or both of these requirements, the extension provided in the notice provides significant relief,” the release states.
Affected hospitals filing Forms 990 before December 31 should state in the narrative of Part V.C. of Schedule H that they’re eligible for and are relying on the relief provided in the notice, the release explains.