[Federal Register Volume 80, Number 47 (Wednesday, March 11, 2015)]
[Rules and Regulations]
[Pages 12761-12762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-05519]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 53

[TD 9708]
RIN 1545-BK57; RIN 1545-BL30; RIN 1545-BL58


Additional Requirements for Charitable Hospitals; Community 
Health Needs Assessments for Charitable Hospitals; Requirements of a 
Section 4959 Excise Tax Return and Time for Filing the Return; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9708) that were published in the Federal Register on December 31, 2014 
(79 FR 78954). The final regulations provide guidance regarding the 
requirements for charitable hospital organizations added by the Patient 
Protection and Affordable Care Act of 2010.

DATES: This correction is effective on March 11, 2015 and applicable 
beginning December 31, 2014.

FOR FURTHER INFORMATION CONTACT: Amy F. Giuliano, Amber L. MacKenzie, 
or Stephanie N. Robbins at (202) 317-5800 (not a toll free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9708) that are the subject of this 
correction is under section 501(r)(3) of the Internal Revenue Code.

Need for Correction

    As published, the final regulations (TD 9708) contains errors that 
may prove to be misleading and are in need of clarification.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 53

    Excise taxes, Foundations, Investments, Lobbying, Reporting and 
recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR parts 1 and 53 are corrected by making the 
following correcting amendments:

[[Page 12762]]

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *


0
Par. 2. Section 1.501(r)-0 is amended by revising the heading for the 
table of contents entry Sec.  1.501(r)-7 to read as follows:


Sec.  1.501(r)-0  Outlines of regulations.

* * * * *


Sec.  1.501(r)-7  Effective/applicability date.

* * * * *

0
Par. 3. Section 1.501(r)-1 is amended by revising the first sentence of 
paragraph (b)(23) and revising paragraph (b)(29)(ii)(B) to read as 
follows:


Sec.  1.501(r)-1  Definitions.

* * * * *
    (b) * * *
    (23) Partnership agreement means, for purposes of paragraph 
(b)(22)(ii)(B) of this section, all written agreements among the 
partners, or between one or more partners and the partnership, and 
concerning affairs of the partnership and responsibilities of the 
partners, whether or not embodied in a document referred to by the 
partners as the partnership agreement. * * *
* * * * *
    (29) * * *
    (ii) * * *
    (B) Without paying a fee to the hospitality facility, hospital 
organization, or other entity maintaining the Web site; and
* * * * *

0
Par. 4. Section 1.501(r)-2 is amended by revising the second sentence 
of paragraph (c) to read as follows:


Sec.  1.501(r)-2  Failures to satisfy section 501(r).

* * * * *
    (c) * * * For purposes of this paragraph (c), a ``willful'' failure 
includes a failure due to gross negligence, reckless disregard, or 
willful neglect, and an ``egregious'' failure includes only a very 
serious failure, taking into account the severity of the impact and the 
number of affected persons. * * *
* * * * *
0
Par. 5. Section 1.501(r)-3 is amended by revising the introductory text 
of paragraph (c)(2) to read as follows:


Sec.  1.501(r)-3  Community health needs assessments.

* * * * *
    (c) * * *
    (2) Description of how the hospital facility plans to address a 
significant health need. A hospital facility's implementation strategy 
will have described a plan to address a significant health need 
identified through a CHNA for purposes of paragraph (c)(1)(i) of this 
section if the implementation strategy--
* * * * *

0
Par. 6. Section 1.501(r)-6 is amended by:
0
1. Revising paragraph (c)(4)(i)(A).
0
2. Revising the first sentence of paragraph (c)(4)(iii)(A).
0
3. Revising the second of paragraph (c)(4)(iv), Example 2.
0
4. Revising paragraph (c)(6)(i)(C)(1).
    The revisions read as follows:


Sec.  1.501(r)-6  Billing and collection.

* * * * *
    (c) * * *
    (4) * * *
    (i) * * *
    (A) Provides the individual with a written notice that indicates 
financial assistance is available for eligible individuals, that 
identifies the ECA(s) that the hospitality facility (or other 
authorized party) intends to initiate to obtain payment for the care, 
and that states a deadline after which such ECA(s) may be initiated 
that is no earlier than 30 days after the date that the written notice 
is provided.
* * * * *
    (iii) * * *
    (A) Otherwise meets the requirements of paragraph (c)(4)(i) of this 
section but, instead of the notice described in paragraph (c)(4)(i)(A) 
of this section, provides the individual with a FAP application form 
and a written notice indicating that financial assistance is available 
for eligible individuals and stating the deadline, if any, after which 
the hospital facility will no longer accept and process a FAP 
application submitted (or, if applicable, completed) by the individual 
for the previously provided care at issue. * * *
* * * * *
    (iv) * * *
    Example 2.  * * * Y also makes numerous attempts to encourage G 
to apply for financial assistance, including by calling G to inform 
her about the financial assistance available to eligible patients 
under Y's FAP and to offer assistance with the FAP application 
process. * * *
* * * * *
    (6) * * *
    (i) * * *
    (C) * * *
    (1) If the individual is determined to be eligible for assistance 
other than free care, provides the individual with a billing statement 
that indicates the amount the individual owes for the care as a FAP-
eligible individual and how that amount was determined and that states, 
or describes how the individual can get information regarding, the AGB 
for the care.
* * * * *

PART 53--FOUNDATION AND SIMILAR EXCISE TAXES

0
Par. 8. The authority citation for part 53 continues to read in part as 
follows:

    Authority:  26 U.S.C. 7805 * * *

0
Par. 9. In Sec.  53.4959-1(c), the paragraph heading is revised to read 
as follows:


Sec.  53.4959-1  Taxes on failures by hospital organizations to meet 
section 501(r)(3).

* * * * *
    (c) Effective/applicability date. * * *
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2015-05519 Filed 3-10-15; 8:45 am]
 BILLING CODE 4830-01-P