GAIN UNDERSTANDING

FORM 990

Hospitals

Success Stories
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Barb McGuan, CPA

Enabling Legislation Allows Hospital to Discontinue Filing 990s


Client Description

A hospital that is a governmental entity had been with the same auditing firm for the first 25+ years of its existence and had filed Form 990 returns for each of those years

Problem/Issue

BerryDunn advisors:

  • Suggested that it was possible/probable the hospital was not required to file 990s, depending on the enabling legislation
  • Applied to the IRS for a determination, requesting that the client not have to continue to file 990s
  • Received a revised determination letter from the IRS indicating that the hospital would no longer need to file 990s

Outcomes

The client no longer is required to file 990s and receives the immediate of the associated cost savings for the remainder of its existence. Additionally, it is not required to make all the expanded disclosures being required of hospitals in the expanded 990 and schedule H, nor does it have to disclose executive compensation.