Tax-Exempt Hospital Audits: Meeting 501(r) Requirements, Avoiding Audit Deficiencies, Preparing Form 990 Schedule H

This webinar will provide CPAs, C-suite, and hospital finance and revenue cycle personnel with an in-depth examination of the unique compliance and audit challenges facing auditors of tax-exempt hospitals. Our panel of tax-exempt organization specialists will discuss the ongoing scrutiny community hospitals face, including the challenges of meeting multiple guidelines such as 501(r) compliance requirements, addressing IRS audits, and preparing Schedule H of Form 990. They will also address best practices to avoid IRS audit deficiencies.

Tax-exempt hospitals must also meet community benefit criteria and specific standards under IRC Section 501(r). The breadth of these requirements creates additional burdens for CPAs auditing these charitable organizations.  

On May 15, 2025, the Treasury Inspector General for Tax Administration (TIGTA) issued a report titled "Vague and Outdated Guidance Creates Challenges for Tax-Exempt Hospital Oversight" in response to concerns raised by U.S. Senators questioning whether tax-exempt hospitals were indeed providing community benefits and the IRS' oversight of these nonprofits. Among the recommendations included by TIGTA was "a proposal to amend Internal Revenue Code § 501 and any other required provisions of law to define the community benefit standard and establish baseline criteria for tax-exempt hospital financial assistance policy eligibility."

The IRS' scrutiny of tax-exempt hospitals, and particularly the required 10-page Schedule H, Hospitals, which accompanies Form 990, adds additional responsibilities for accountants and auditors who assist these community-driven nonprofits. Ensuring audits of nonprofit hospitals meet not only financial reporting guidelines but also compliance requirements is particularly important given the current focus on tax-exempt hospitals.

Listen as our panel of tax-exempt organization specialists provides expert advice on meeting audit and compliance requirements for tax-exempt hospital examinations.