General Information

IRS Issues Burdensome Draft Schedule H

The Internal Revenue Service (IRS) released new drafts of 2011 Schedule H, Hospitals, and 2011 Instructions for Schedule H (Form 990). Despite numerous comments from hospitals, the IRS did not incorporate many recommended changes. The draft schedule and instructions are substantially similar to versions released earlier this year but made optional for 2010 tax years. The IRS also announced that certain Form 990 Schedule H Part V facility-by-facility reporting will be required beginning with 2011 tax years. Section 9007 of the Affordable Care Act included new requirements for tax-exempt hospital organizations and their facilities. As a result, the IRS revised Form 990 and Schedule H. CHA will work in collaboration with the American Hospital Association to prepare comments on the draft by the Jan. 15, 2012, comment deadline. For more information on Form 990, see attached IRS Notice 2012-4. Contact: Anne McLeod, (916) 552-7536,