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Tax-Exempt Hospitals Want Filing Extension

Posted on Apr. 3, 2020

Tax-exempt hospitals should be given more time to file IRS information returns as they battle the coronavirus, according to nonprofit healthcare representatives.

The IRS should automatically give nonprofit hospitals six more months to file forms 990, 990-T, and 4720, according to the leaders of the American Hospital Association, the Association of American Medical Colleges, and the Catholic Health Association of the United States.

The extension should apply to regular deadlines for filing returns otherwise due between March 13, 2020, and the end of the national emergency declared by President Trump, the groups said in a March 31 letter to the IRS and Treasury Department.

There also should be no penalties if a tax-exempt hospital is delayed up to one year in completing a community health needs assessment or CHNA implementation plan, the letter said.

“Hospitals and health systems are on the front lines in responding to and meeting the needs of communities as they confront the COVID-19 pandemic,” the healthcare groups said. “At this time, all resources must be made available to meet the demands of the health and economic emergency we face.”

Tax-exempt hospitals are not covered by IRS Notice 2020-18, 2020-15 IRB 1, which automatically extended the filing due date for individuals and businesses from April 15 to July 15.

In a March 20 letter to the IRS and Treasury, groups representing higher education said colleges, universities, and other exempt organizations should be included in the filing extension.

In the March 23 issue of its online newsletter, the National Council of Nonprofits called the exclusion of most nonprofits from Notice 2020-18 a “major problem.” It noted that the filing extension is limited to returns due April 15 but that returns of exempt organizations operating on a calendar-year basis are due May 15.

“Therefore, without another fix, only nonprofits with a calendar year that ends on November 30 will enjoy the tax filing relief [available] for every other taxpaying entity,” the council said.

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