The American Hospital Association, Healthcare Financial Management Association and VHA recently sent a letter (pdf) to the Office of Management and Budget indicating the Internal Revenue Service did not follow the Paperwork Reduction Act of 1995 in issuing the revised Form 990 Schedule H, and the new provisions should be withdrawn.
The Paperwork Reduction Act was created to minimize reporting burdens for non-profit organizations. The groups argued in the letter the new requirements of Schedule H, specifically Part V Section B, should be voided because the IRS did not submit the revised form to the OMB for review. The PRA requires any "material changes" to the Form 990 to receive OMB approval.
The three groups also said complying with the new Schedule H, which is part of Section 501(r) requirements through the Patient Protection and Affordable Care Act, is "unnecessarily duplicative, burdensome, in certain instance, ambiguous, and generally inconsistent with hospitals' existing reporting and record keeping practices," according to the letter.
The IRS released the 2011 Form 990 in January.
The Paperwork Reduction Act was created to minimize reporting burdens for non-profit organizations. The groups argued in the letter the new requirements of Schedule H, specifically Part V Section B, should be voided because the IRS did not submit the revised form to the OMB for review. The PRA requires any "material changes" to the Form 990 to receive OMB approval.
The three groups also said complying with the new Schedule H, which is part of Section 501(r) requirements through the Patient Protection and Affordable Care Act, is "unnecessarily duplicative, burdensome, in certain instance, ambiguous, and generally inconsistent with hospitals' existing reporting and record keeping practices," according to the letter.
The IRS released the 2011 Form 990 in January.
Related Articles on Form 990 Schedule H:
Report: Hospitals Link 11.3% of Expenses to Community Benefit
IRS Issues "Early Release" Draft of Schedule H; AHA Calls Form Burdensome
IRS Issues Second Draft of Schedule H Tax Form, Seeks Additional Comments